Paychex Inc. (NASDAQ: PAYX) shares were down on Thursday Dec 22 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
Meanwhile, U.S. stocks opened mostly flat on Thursday. The Dow Jones Industrial Average DJIA, -0.15% fell 15 points to 19,928, a drop of less than 0.1%. The S&P 500 SPX, -0.22% fell 1 point, or 0.05%, to 2,264. The Nasdaq Composite Index COMP, -0.23% fell 1 point to 5,470.21, essentially unchanged on the day.
Paychex Inc. (NASDAQ: PAYX) had its price target raised by equities researchers at Compass Point from $45.00 to $48.00. With a rating of Sell on the shares, Paychex Inc. has a 52-week high of $62.14. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and Paychex Inc. has secured a consensus one-year price target of $56.40, lower than the opening price of $61.35.
Paychex Inc. (NASDAQ: PAYX) shares last traded at $60.94, which is a decrease of $0.45 per share or -0.73% from the previous closing price. Opening at $61.35, they varied from $60.85 and $61.38 throughout the day.
Paychex Inc. (NASDAQ: PAYX) currently has a market cap of 22.04B.
Paychex Inc. (NASDAQ: PAYX) Average Daily Trading Volume
168,174 shares traded hands yesterday, lower than the average, out of a total float 322,998,000. Momentum traders often use increases in trading volume to pinpoint large volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
However, one day of high volume buy side trading is not enough to assert a trend. As such, market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.
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 teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
Paychex Inc. (NASDAQ: PAYX) 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 investors to make those trends work in their favor and increase the number of successful trades.
Trades for Paychex Inc. (NASDAQ: PAYX) have ranged from $45.76 – 62.14, and the stock now has a 50-day MA of $57.94 and 200-day MA of $58.21. Today’s last price is 1.93%% lower than the 52 week high of $62.14.
Earnings growth is an important factor to research when investing in stocks and investors identify companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.
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