International Business Machines Corp. (NYSE: IBM) shares fell on Thursday Dec 1 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
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 Credit Suisse Group AG reiterated a Sell rating on shares of International Business Machines Corp. (NYSE: IBM) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. The company currently has a rating of Sell on the shares. The one-year price target of $157.10 is less than the opening price of $161.95, resulting a number of other analysts to comment on the stock recently. Looking back over the last year, International Business Machines Corp. stock has a high of $165.00. Usually, after analysts issue a “reiterated rating” report on a stock, they will later issue other revisions, often followed by a price target change.
Shares of International Business Machines Corp. (NYSE: IBM) opened at $161.95 on Tuesday trading between $160.01 and $162.20, and last traded at $160.03, which represents a dip of $2.19 per share or -1.35% over the previous closing price.
International Business Machines Corp. (NYSE: IBM) now has a market cap of 152.17B.
International Business Machines Corp. (NYSE: IBM) Average Daily Trading Volume
The stock’s average daily volume is 3,494,630 shares out of a total float 868,767,000 and some 519,024 shares crossed the trading desk yesterday, lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to pinpoint heavy volume aggregation or dissemination by institutional investors.
While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive cue 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.
These professional investors have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
International Business Machines Corp. (NYSE: IBM) 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 marking the activity of these professional investors and how they influence moving averages, traders can make smarter trades.
With that in mind, International Business Machines Corp. (NYSE: IBM) now has a 50-day MA of $155.81 and 200-day MA of $155.94. It has traded in a 52-week range between $116.90 – 165.00 and today’s last price is 3.01%% lower than the 52 week high of $165.00.
Earnings growth is a critical factor to look at when buying stocks and investors identify companies that have increased their earnings at least 25% or more for the past 3 years.
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