Apple Inc. (NASDAQ: AAPL) shares fell on Thursday Nov 17 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
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.
Shares of Apple Inc. (NASDAQ: AAPL) were downgraded by analysts at Vetr Inc. in a note to their investors today. The company currently has a rating of Buy on the stock. A number of other analysts have commented on the company in recent days, and Apple Inc. has secured a consensus one-year price target of $130.91, higher than the opening price of $109.81. Apple Inc. stock has a 52-week high of $119.92. Important and integral digressions in the company’s operations, future vision or industry can cause downgrades as the analysts feel that the future prospects for the security have dropped from the initial recommendation.
Apple Inc. (NASDAQ: AAPL) shares last traded at $109.65, which represents a dip of $0.34 per share or -0.31% from the previous closing price. Opening at $109.81, they ranged from $109.32 and $110.35 throughout the day.
Apple Inc. (NASDAQ: AAPL) now has a market cap of 113,744.95B.
Apple Inc. (NASDAQ: AAPL) Average Daily Trading Volume
4,594,155 shares crossed the trading desk yesterday, below the norm, out of a total float 5,313,276,000. Investors often use swings in trading volume to determine large volume accumulation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have 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.
Apple Inc. (NASDAQ: AAPL) 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 following the activity of these professional investors and how they affect moving averages, traders can make well planned trades.
With that in mind, Apple Inc. (NASDAQ: AAPL) now has a 50-day MA of $113.39 and 200-day MA of $104.56. It has traded in a 52-week range between $89.47 – 119.92 and today’s last price is 8.56%% lower than the 52 week high of $119.92.
Earnings growth is an important factor to consider when investing in stocks and investors look for companies that have raised their earnings at least 25% or more for 3 consecutive years.
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