Old Dominion Freight Line Inc. (ODFL) stock down despite upgrade at Zacks Investment Research

Old Dominion Freight Line Inc. (NASDAQ: ODFL) shares slid back in value Tuesday Nov 22 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, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.

The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.

Analysts at Zacks Investment Research upgraded shares of Old Dominion Freight Line Inc. (NASDAQ: ODFL) from Hold to Buy today. Zacks Investment Research currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have spoken on the company in recent days, and the company has secured a consensus one-year price target of $80.08, lower than the opening price of $87.00. Old Dominion Freight Line Inc. stock has a 52-week high of $87.36. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.

Old Dominion Freight Line Inc. (NASDAQ: ODFL) shares last traded at $86.47, which is a decrease of $0.17 per share or -0.20% from the previous closing price. Opening at $87.00, they fluctuated from $85.72 and $87.00 throughout the day.

Old Dominion Freight Line Inc. (NASDAQ: ODFL) currently has a market cap of 7.13B.

Old Dominion Freight Line Inc. (NASDAQ: ODFL) Average Daily Trading Volume

The stock’s average daily volume is 604,560 shares out of a total float 66,463,000 and some 32,623 shares traded hands yesterday, lower than the norm. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to determine substantial volume growth or dissemination by institutional investors.

While an increase in 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 expresses a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.

Old Dominion Freight Line Inc. (NASDAQ: ODFL) 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 the moving averages they affect—it allows for traders to make more impactful decisions on trades.

Trades for Old Dominion Freight Line Inc. (NASDAQ: ODFL) have ranged from $48.92 – 87.36, and the stock now has a 50-day MA of $74.84 and 200-day MA of $67.91. Today’s last price is 1.02%% below the 52 week high of $87.36.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings by at least 25% for the past 3 years.

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