Dow Chemical Co. (DOW) Stock Price Target Moved to $72.00 at RBC Capital Markets

Dow Chemical Co. (NYSE: DOW) shares rose on Monday Dec 19 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.

The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.

The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.

Dow Chemical Co. (NYSE: DOW) had its price target increased by equities researchers at RBC Capital Markets from $68.00 to $72.00. With a rating of Top Pick on the stock, Dow Chemical Co. has a 52-week high of $59.00. The one-year price target of $61.71 is higher than the opening price of $58.94, that has caused a fair amount of other analysts to report on the company recently.

Dow Chemical Co. (NYSE: DOW) shares last traded at $58.71, which represents a spike of $0.30 or 0.51% from the previous closing price. Opening at $58.94, they ranged from $58.45 and $58.94 throughout the day.

Dow Chemical Co. (NYSE: DOW) currently has a market cap of 65.83B.

Dow Chemical Co. (NYSE: DOW) Average Daily Trading Volume

675,101 shares traded hands yesterday, lower than the average, out of a total float 1,045,855,000. Trading volume is likely to increase in the next few days as swing traders often use upticks in trading volume to determine heavy volume growth or distribution 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 series of days or weeks sends a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.

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 substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Dow Chemical Co. (NYSE: DOW) 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 following the activity of these professional investors and how they affect moving averages, traders can make educated trades.

With that in mind, Dow Chemical Co. (NYSE: DOW) now has a 50-day MA of $54.97 and 200-day MA of $53.26. It has traded in a 52-week range between $40.26 – 59.000 and today’s last price is 0.50%% lower than the 52 week high of $59.00.

Earnings growth is an important factor to look at when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more over a 3 year period.

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