Raytheon Company (NYSE: RTN) 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.
Analysts at Jefferies Group LLC reiterated a Buy rating on shares of Raytheon Company (NYSE: RTN) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. Jefferies Group LLC currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have commented on the company recently, and Raytheon Company has secured a consensus one-year price target of $167.39, above the opening price of $144.96, a difference of 11.65 percent. Raytheon Company stock has a 52-week high of $152.58. Stock prices sometimes get a spike to the upside when analysts reiterate coverage.
Yesterday Raytheon Company (NYSE: RTN) shares last traded at $143.70, which is a drop of $1.85 compared to the previous closing price. Opening at $144.96, they varied from $143.51 and $145.46 throughout the day.
Raytheon Company (NYSE: RTN) now has a market cap of 42.28B.
Raytheon Company (NYSE: RTN) Average Daily Trading Volume
110,413 shares crossed the trading desk yesterday, 82 percent lower than the average, out of a total float 293,638,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Raytheon Company (NYSE: RTN) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for Raytheon Company (NYSE: RTN) have ranged from $119.38 – 152.5800, and the stock now has a 50-day MA of $144.94 and 200-day MA of $141.58. Today’s last price is 5.82%% lower than the 52 week high of $152.58.
Earnings growth is a critical factor to consider when buying stocks and investors seek companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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