Cisco Systems, Inc. (NASDAQ: CSCO) shares rose on Tuesday February 7 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.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Analysts at Robert W. Baird reiterated an Outperform rating on shares of Cisco Systems, Inc. (NASDAQ: CSCO) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Outperform on the stock. The one-year price target of $33.26 is above the opening price of $31.40, that has caused a fair amount of other analysts to comment on the company recently. Looking back over the last year, Cisco Systems, Inc. stock has a high of $31.95. Usually, after analysts assign a “reiterated rating” report on a stock, they will subsequently issue other revisions, often followed by a price target change.
Shares of Cisco Systems, Inc. (NASDAQ: CSCO) opened at $31.40 yesterday and traded in a range between, $31.33 and $31.54, and last traded at $31.54, which is an increase of $0.24 compared to the previous closing price.
Cisco Systems, Inc. (NASDAQ: CSCO) now has a market cap of 158.30B.
Cisco Systems, Inc. (NASDAQ: CSCO) Average Daily Trading Volume
2,490,839 shares traded hands yesterday, 89 percent below the norm, out of a total float 5,016,445,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Cisco Systems, Inc. (NASDAQ: CSCO) 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.
Trades for Cisco Systems, Inc. (NASDAQ: CSCO) have ranged from $22.46 – 31.950, and the stock now has a 50-day MA of $30.47 and 200-day MA of $30.71. Today’s last price is 1.30%% lower than the 52 week high of $31.95.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have grown their earnings at least 25% or more over the past 3 years.
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