PayPal Holdings, Inc. (NASDAQ: PYPL) shares fell on Tuesday January 31 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
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.
Cantor Fitzgerald analysts reiterated its Overweight rating on PayPal Holdings, Inc. (NASDAQ: PYPL) in a note to investors, making it one of the more closely watched stocks on Wall Street. Cantor Fitzgerald currently has a rating of Overweight on the shares. A number of other analysts have issued reports on the stock recently, and the company has secured a consensus one-year price target of $46.78, higher than the opening price of $39.70. PayPal Holdings, Inc. stock has a 52-week high of $44.52. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Yesterday PayPal Holdings, Inc. (NASDAQ: PYPL) shares last traded at $39.78, which is a drop of $0.09 over the previous closing price. Opening at $39.70, they fluctuated from $39.68 and $40.01 throughout the day.
PayPal Holdings, Inc. (NASDAQ: PYPL) now has a market cap of 46.93B.
PayPal Holdings, Inc. (NASDAQ: PYPL) Average Daily Trading Volume
The stock’s average daily volume is 7,175,470 shares out of a total float 1,110,380,000 and some 1,161,485 shares crossed the trading desk yesterday, 119 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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.
These instituitional investors retain substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you are considering.
PayPal Holdings, Inc. (NASDAQ: PYPL) 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 PayPal Holdings, Inc. (NASDAQ: PYPL) have ranged from $31.64 – 44.520, and the stock now has a 50-day MA of $40.54 and 200-day MA of $39.69. Today’s last price is 10.66%% under the 52 week high of $44.52.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have been successful at growing their earnings by at least 25% over the past 3 years.
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