TELUS Corporation (NYSE: TU) shares slid back in value on Tuesday February 7 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Analysts at National Bank Financial upgraded shares of TELUS Corporation (NYSE: TU) from Sector Perform to Outperform today. The company currently has a rating of Outperform on the stock. The one-year price target of $33.70 is above the opening price of $33.58, causing a fair amount of other analysts to issue statements on the stock in recent days. Looking back over the last 52 weeks, TELUS Corporation stock has a high of $34.12. Share prices sometimes get a boost to the upside when analysts upgrade a stock.
Shares of TELUS Corporation (NYSE: TU) opened at $33.58 yesterday trading between $33.18 and $33.58, and last traded at $33.21, which represents a drop of $0.19 compared to the previous closing price.
TELUS Corporation (NYSE: TU) currently has a market cap of 19.63B.
TELUS Corporation (NYSE: TU) Average Daily Trading Volume
The stock’s average daily volume is 290,887 shares out of a total float 590,154,000 and some 106,293 shares traded hands yesterday, 21 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.
TELUS Corporation (NYSE: TU) 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 traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, TELUS Corporation (NYSE: TU) now has a 50-day MA of $32.77 and 200-day MA of $32.54. It has traded in a 52-week range between $27.46 – 34.12 and today’s last price is 2.67%% lower than the 52 week high of $34.12.
Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have raised their earnings at least 25% or more over the past 3 years.
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