WEX Inc. (NYSE: WEX) 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 WEX Inc. (NYSE: WEX) from Hold to Buy today. With a rating of Buy on the shares, WEX Inc. has a 52-week high of $119.02. The one-year price target of $117.00 is above the opening price of $114.32, that has caused a fair amount of other analysts to report on the stock in recent days. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of WEX Inc. (NYSE: WEX) opened at $114.32 yesterday and traded in a range between, $113.43 and $115.26, and last traded at $115.25, which is an increase of $0.95 compared to the previous closing price.
WEX Inc. (NYSE: WEX) now has a market cap of 4.93B.
WEX Inc. (NYSE: WEX) Average Daily Trading Volume
The stock’s average daily volume is 326,500 shares out of a total float 38,345,000 and some 53,827 shares traded hands yesterday, 76 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
WEX Inc. (NYSE: WEX) 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, WEX Inc. (NYSE: WEX) now has a 50-day MA of $113.93 and 200-day MA of $105.42. It has traded in a 52-week range between $54.42 – 119.02 and today’s last price is 3.17%% lower than the 52 week high of $119.02.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more for the past 3 years.
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