Wabco Holdings Inc. (NYSE: WBC) shares rose in value on Thursday February 2 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, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.
Analysts at Piper Jaffray Companies upgraded shares of Wabco Holdings Inc. (NYSE: WBC) from Neutral to Overweight today. The company currently has a rating of Overweight on the shares. A number of other analysts have spoken on the stock recently, and Wabco Holdings Inc. has secured a consensus one-year price target of $119.00, higher than the opening price of $115.01. Wabco Holdings Inc. stock has a 52-week high of $115.75. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Yesterday Wabco Holdings Inc. (NYSE: WBC) shares last traded at $112.92, which represents a jump of $0.69 from the previous closing price. Opening at $115.01, they varied from $112.69 and $115.75 throughout the day.
Wabco Holdings Inc. (NYSE: WBC) now has a market cap of 6.22B.
Wabco Holdings Inc. (NYSE: WBC) Average Daily Trading Volume
The stock’s average daily volume is 457,705 shares out of a total float 48,429,000 and some 117,454 shares crossed the trading desk yesterday, 112 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as investors 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Wabco Holdings Inc. (NYSE: WBC) 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 Wabco Holdings Inc. (NYSE: WBC) have ranged from $84.48 – 115.75, and the stock now has a 50-day MA of $107.46 and 200-day MA of $104.71. Today’s last price is 2.44%% lower than the 52 week high of $115.75.
Earnings growth is a crucial factor to consider when investing in stocks and investors identify companies that have increased their earnings at least 25% or more over the past 3 years.
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