Applied Materials, Inc. (NASDAQ: AMAT) shares rose on Monday February 13 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.
Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Applied Materials, Inc. (NASDAQ: AMAT) had its price target increased by equities researchers at Cowen and Company from $33.00 to $40.00. The company currently has a rating of Outperform on the shares. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and Applied Materials, Inc. has earned a consensus one-year price target of $37.14, higher than the opening price of $35.72. Applied Materials, Inc. stock has a 52-week high of $35.85.
Yesterday Applied Materials, Inc. (NASDAQ: AMAT) shares last traded at $35.53, a spike of $0.21 over the previous closing price. Opening at $35.72, they varied from $35.50 and $35.83 throughout the day.
Applied Materials, Inc. (NASDAQ: AMAT) currently has a market cap of 38.25B.
Applied Materials, Inc. (NASDAQ: AMAT) Average Daily Trading Volume
The stock’s average daily volume is 10,038,600 shares out of a total float 1,074,373,000 and some 818,907 shares crossed the trading desk yesterday, 96 percent lower than normal. 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.
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 researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Applied Materials, Inc. (NASDAQ: AMAT) 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 Applied Materials, Inc. (NASDAQ: AMAT) have ranged from $15.50 – 35.85, and the stock now has a 50-day MA of $33.81 and 200-day MA of $30.54. Today’s last price is 0.89%% below the 52 week high of $35.85.
Earnings growth is a critical factor to consider when investing in stocks and investors look for companies that have been successful at growing their earnings at least 25% or more over the past 3 years.
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