CVS Health Corporation (NYSE: CVS) shares rose in value early today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Vetr Inc. upgraded shares of CVS Health Corporation (NYSE: CVS) from Hold to Buy today. The company currently has a rating of Buy on the stock. The one-year price target of $109.20 is higher than the opening price of $86.85, resulting a fair amount of other analysts to comment on the stock recently. Looking back over the last 52 weeks, CVS Health Corporation stock has a high of $106.67. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Meanwhile, U.S. stock futures on Monday pointed to a higher open, as investors prepared for the start of earnings season
S&P 500 futures ESZ6, +0.44% rose by 9 points, or 0.4%, to 2,155.50, while Dow Jones Industrial Average futures YMZ6, +0.40% gained 64 points, or 0.4%, to 18,221.
Nasdaq-100 futures NQZ6, +0.42% tacked on 17.75 points, or 0.4%, to 4,876.75.Meanwhile, U.S. stock futures on Monday pointed to a higher open, as investors prepared for the start of earnings season
Shares of CVS Health Corporation (NYSE: CVS) opened at $86.85 yesterday and traded in a range between, $86.41 and $87.08, and last traded at $86.51, a spike of $0.11 or 0.00 from the previous closing price.
CVS Health Corporation (NYSE: CVS) currently has a market cap of 92.24B.
CVS Health CorporationTrading Volume
608,430 shares crossed the trading desk yesterday, below the average, out of a total float 1,064,636,000. Swing traders often use upticks in trading volume to pinpoint large volume accumulation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to demonstrate 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.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re researching.
CVS Health Corporation 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.
Traders are able to make make more useful judgments on trades when they follow the activity of professional investors.
Trades for CVS Health Corporation (NYSE: CVS) have ranged from $85.89 – 106.67, and the stock now has a 50-day MA of $91.41 and 200-day MA of $96.91. Today’s last price is 0.19% under the 52 week high of $106.67.
Earnings growth is ann important factor to research when investing in stocks and investors look for companies that have increased their earnings at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and 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.