Broadcom Limited (NASDAQ: AVGO) shares rose on Wednesday February 8 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
Meanwhile U.S. stocks traded modestly lower on Wednesday, as losses in energy shares following a drop in oil prices and a slide in financials weighed on the main indexes.
The S&P 500 index SPX, -0.17% declined 6 points, or 0.3%, to 2,286, with six of the main sectors trading lower. Energy and financials were leading the losses, down more than 1%.
The Dow Jones Industrial Average DJIA, -0.26% was down 65 points, or 0.3%, to 20,021, a day after the blue-chip index set an intraday high at 10,155.35. The Nasdaq Composite COMP, -0.13% retreated from an all-time high set on Tuesday, falling 23 points, or 0.4%, to 5,650.
Broadcom Limited (NASDAQ: AVGO) had its price target increased by equities researchers at RBC Capital Markets from $200.00 to $225.00. With a rating of Top Pick on the stock, Broadcom Limited has a 52-week high of $207.40. The one-year price target of $216.23 is above the opening price of $205.97, resulting a fair amount of other analysts to comment on the company in recent days.
Yesterday Broadcom Limited (NASDAQ: AVGO) shares last traded at $206.81, a jump of $0.90 from the previous closing price. Opening at $205.97, they varied from $205.16 and $206.81 throughout the day.
Broadcom Limited (NASDAQ: AVGO) currently has a market cap of 82.51B.
Broadcom Limited (NASDAQ: AVGO) Average Daily Trading Volume
230,981 shares traded hands yesterday, 110 percent lower than the norm, out of a total float 398,485,000. 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.
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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.
Broadcom Limited (NASDAQ: AVGO) 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.
With that in mind, Broadcom Limited (NASDAQ: AVGO) now has a 50-day MA of $188.47 and 200-day MA of $175.39. It has traded in a 52-week range between $114.25 – 207.40 and today’s last price is 0.28%% lower than the 52 week high of $207.40.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.