Open Text Corporation (NASDAQ: OTEX) 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 Zacks Investment Research upgraded shares of Open Text Corporation (NASDAQ: OTEX) from Sell to Strong-Buy today. With a rating of Strong-Buy on the stock, Open Text Corporation has a 52-week high of $66.84. A number of other analysts have spoken on the stock recently, and the company has earned a consensus one-year price target of $37.43, higher than the opening price of $34.05, a difference of 10.91 percent. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of Open Text Corporation (NASDAQ: OTEX) opened at $34.05 yesterday trading between $34.05 and $34.31, and last traded at $34.31, which is a spike of $0.24 from the previous closing price.
Open Text Corporation (NASDAQ: OTEX) currently has a market cap of 8.29B.
Open Text Corporation (NASDAQ: OTEX) Average Daily Trading Volume
The stock’s average daily volume is 334,958 shares out of a total float 237,275,000 and some 48,775 shares crossed the trading desk yesterday, 67 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Open Text Corporation (NASDAQ: OTEX) 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.
Trades for Open Text Corporation (NASDAQ: OTEX) have ranged from $33.16 – 66.84, and the stock now has a 50-day MA of $59.05 and 200-day MA of $61.92. Today’s last price is 48.67%% below the 52 week high of $66.84.
Earnings growth is a critical factor to research when buying stocks and investors identify companies that have grown their earnings by at least 25% for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.