Adobe Systems Inc. (NASDAQ: ADBE) shares rose on Thursday Nov 17 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
Analysts at BTIG Research initiated coverage on Adobe Systems Inc. (NASDAQ: ADBE) stock, rating the company at Neutral. With a rating of Neutral on the shares, the company has a 52-week high of $111.09. The one-year price target of $120.58 is above the opening price of $103.77, that has caused a number of other analysts to report on the stock recently. Changes in price targets are not unheard of as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Shares of Adobe Systems Inc. (NASDAQ: ADBE) opened at $103.77 on Monday and traded in a range between, $103.48 and $104.63, and last traded at $104.15, a spike of $0.07 or 0.07% from the previous closing price.
Adobe Systems Inc. (NASDAQ: ADBE) currently has a market cap of 51,786.04B.
Adobe Systems Inc. (NASDAQ: ADBE) Average Daily Trading Volume
The stock’s average daily volume is 2,394,270 shares out of a total float 495,422,000 and some 149,277 shares crossed the trading desk yesterday, below the norm. Swing traders often use upticks in trading volume to determine substantial volume accumulation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
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 delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship commonly refers to 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 investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Adobe Systems Inc. (NASDAQ: ADBE) 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 investors to make those trends work in their favor and increase the number of winning trades.
Trades for Adobe Systems Inc. (NASDAQ: ADBE) have ranged from $71.27 – 111.0900, and the stock now has a 50-day MA of $107.51 and 200-day MA of $100.86. Today’s last price is 6.25%% below the 52 week high of $111.09.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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