Nordson Corp. (NASDAQ: NDSN) shares rose in value Wednesday Dec 14 with heavier 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. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Zacks Investment Research upgraded shares of Nordson Corp. (NASDAQ: NDSN) from Sell to Hold today. With a rating of Hold on the stock, Nordson Corp. has a 52-week high of $112.45. The one-year price target of $106.38 is less than the opening price of $110.56, causing a fair amount of other analysts to comment on the stock in recent days. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Nordson Corp. (NASDAQ: NDSN) shares last traded at $111.83, which is a jump of $7.56 or 7.25% from the previous closing price. Opening at $110.56, they ranged from $108.94 and $112.45 throughout the day.
Nordson Corp. (NASDAQ: NDSN) currently has a market cap of 6.40B.
Nordson Corp. (NASDAQ: NDSN) Average Daily Trading Volume
The stock’s average daily volume is 236,467 shares out of a total float 50,173,000 and some 522,970 shares traded hands yesterday, higher than the average. Substantial increases in trading volume and price inflation together could mean excessive volume accumulation by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to show 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.
Professional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
Nordson Corp. (NASDAQ: NDSN) 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 the best trades when they follow the trading habits of professional investors.
Trades for Nordson Corp. (NASDAQ: NDSN) have ranged from $51.89 – 112.45, and the stock now has a 50-day MA of $104.55 and 200-day MA of $95.17. Today’s last price is 0.55%% under the 52 week high of $112.45.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have increased their earnings by at least 25% for 3 consecutive years.
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