Deere & Co. (NYSE: DE) shares rose in value Thursday Dec 1 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks opened with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Bank of America Corp. upgraded shares of Deere & Co. (NYSE: DE) from Neutral to Buy today. With a rating of Buy on the stock, Deere & Co. has a 52-week high of $104.83. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $98.05, a decrease compared to the opening price of $100.95, a difference of 9.62 percent. Typically, after analysts publish an upgrade report on a stock, they will later issue recurring revisions, such as a price target change.
Deere & Co. (NYSE: DE) shares last traded at $101.88, which is a spike of $1.68 or 1.68% over the previous closing price. Opening at $100.95, they varied from $100.73 and $102.11 throughout the day.
Deere & Co. (NYSE: DE) now has a market cap of 32.07B.
Deere & Co. (NYSE: DE) Average Daily Trading Volume
487,886 shares traded hands yesterday, lower than the average, out of a total float 261,784,000. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to pinpoint heavy volume aggregation or circulation by institutional investors.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Deere & Co. (NYSE: DE) 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 Deere & Co. (NYSE: DE) have ranged from $70.16 – 104.8300, and the stock now has a 50-day MA of $89.76 and 200-day MA of $84.31. Today’s last price is 2.81%% below the 52 week high of $104.83.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more over 3 consecutive years.
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