PPG Industries Inc. (NYSE: PPG) shares rose on Monday Dec 5 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Bank of America Corp. initiated coverage on PPG Industries Inc. (NYSE: PPG) stock, rating the company at Buy. With a rating of Buy on the shares, the company has a 52-week high of $117.00. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and the company has earned a consensus one-year price target of $110.26, above the opening price of $95.36. Changes in price targets are not unusual as analysts and brokerage firms will publish periodic updates after initiating coverage,.
PPG Industries Inc. (NYSE: PPG) shares last traded at $96.63, which represents an increase of $2.05 or 2.17% from the previous closing price. Opening at $95.36, they fluctuated from $95.23 and $96.99 throughout the day.
PPG Industries Inc. (NYSE: PPG) now has a market cap of 25.51B.
PPG Industries Inc. (NYSE: PPG) Average Daily Trading Volume
The stock’s average daily volume is 1,914,590 shares out of a total float 262,865,000 and some 149,501 shares traded hands yesterday, below normal. Investors often use swings in trading volume to identify substantial volume aggregation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to indicate 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.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
PPG Industries Inc. (NYSE: PPG) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
Trades for PPG Industries Inc. (NYSE: PPG) have ranged from $88.37 – 117.00, and the stock now has a 50-day MA of $94.54 and 200-day MA of $102.29. Today’s last price is 17.41%% below the 52 week high of $117.00.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more for 3 consecutive years.
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