AbbVie Inc. (NYSE: ABBV) shares rose on Tuesday February 14 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 U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Analysts at Jefferies Group LLC reiterated a Buy rating on shares of AbbVie Inc. (NYSE: ABBV) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Buy on the shares, the company has a 52-week high of $68.12. The one-year price target of $69.78 is higher than the opening price of $60.44, that has caused a number of other analysts to comment on the stock in recent days. Stock prices sometimes get a boost to the upside when analysts reiterate coverage.
Yesterday AbbVie Inc. (NYSE: ABBV) shares last traded at $60.54, which represents a jump of $0.03 from the previous closing price. Opening at $60.44, they fluctuated from $60.39 and $60.62 throughout the day.
AbbVie Inc. (NYSE: ABBV) currently has a market cap of 98.38B.
AbbVie Inc. (NYSE: ABBV) Average Daily Trading Volume
434,146 shares traded hands yesterday, 79 percent lower than the average, out of a total float 1,623,798,000. 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.
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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
AbbVie Inc. (NYSE: ABBV) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, AbbVie Inc. (NYSE: ABBV) now has a 50-day MA of $61.63 and 200-day MA of $62.47. It has traded in a 52-week range between $52.73 – 68.120 and today’s last price is 11.14%% lower than the 52 week high of $68.12.
Earnings growth is an important factor to consider when investing in stocks and investors identify companies that have grown their earnings by at least 25% over 3 consecutive years.
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