MarketAxess Holdings, Inc. (NASDAQ: MKTX) shares rose in value on Tuesday January 31 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.60% fell 140 points, or 0.7%, to 19,833, with 26 of the 30 blue-chip companies trading lower. Nike, Inc. NKE, -1.10% down 2.4% and Intel Corp. INTC, -1.70% off 1%, were leading losses.
The S&P 500 SPX, -0.33% was off by 10 points, or 0.5%, to 2,270 with seven of the 11 main sectors trading lower. Industrials, consumer-discretionary, and technology shares were the worst performers, while real estate and utilities stocks attracted buyers.
The health-care sector, which was down in early trade, rebounded after President Trump called for scaling back drugmaker’s regulation, lowering taxes and prices of medicines.
The Nasdaq Composite COMP, -0.25% declined 31 points, or 0.6%, to 5,581.
Analysts at Macquarie upgraded shares of MarketAxess Holdings, Inc. (NASDAQ: MKTX) from Underperform to Neutral today. With a rating of Neutral on the shares, MarketAxess Holdings, Inc. has a 52-week high of $185.81. A number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $178.33, less than the opening price of $183.47, a difference of 9.60 percent. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Yesterday MarketAxess Holdings, Inc. (NASDAQ: MKTX) shares last traded at $185.82, which is a jump of $4.48 compared to the previous closing price. Opening at $183.47, they varied from $183.47 and $185.82 throughout the day.
MarketAxess Holdings, Inc. (NASDAQ: MKTX) currently has a market cap of 6.84B.
MarketAxess Holdings, Inc. (NASDAQ: MKTX) Average Daily Trading Volume
30,680 shares crossed the trading desk yesterday, 53 percent below normal, out of a total float 35,544,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
MarketAxess Holdings, Inc. (NASDAQ: MKTX) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, MarketAxess Holdings, Inc. (NASDAQ: MKTX) now has a 50-day MA of $158.91 and 200-day MA of $161.39. It has traded in a 52-week range between $102.32 – 185.815 and today’s last price is 0.00%% the 52 week high of $185.81.
Earnings growth is a crucial factor to consider when buying stocks and investors identify companies that have grown their earnings at least 25% or more over a 3 year period.
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