Time Warner Inc. (NYSE: TWX) shares rose on Friday January 13 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.03% slipped 5.27 points to close 19,885.73, moving in a roughly 100-point range all session. For the week, the blue-chip index is off 0.4%.
U.S. financial markets will be closed Monday for Martin Luther King Jr. Day.
The S&P 500 index SPX, +0.18% added 4.20 points, or 0.2%, to end at 2,274.64 for a weekly loss of 0.1%, and the Nasdaq Composite Index COMP, +0.48% climbed 26.63 points, or 0.5%, to finish at 5,574.12, its sixth all-time closing high in seven trading sessions.
Analysts at Pivotal Research reiterated a Buy rating on shares of Time Warner Inc. (NYSE: TWX) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Buy on the shares, the company has a 52-week high of $97.21. The one-year price target of $103.45 is higher than the opening price of $93.68, that has caused a fair amount of other analysts to report on the stock recently. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of Time Warner Inc. (NYSE: TWX) opened at $93.68 yesterday and traded in a range between, $93.50 and $94.41, and last traded at $94.14, which is an increase of $0.29 compared to the previous closing price.
Time Warner Inc. (NYSE: TWX) now has a market cap of 72.59B.
Time Warner Inc. (NYSE: TWX) Average Daily Trading Volume
3,162,407 shares traded hands yesterday, 77 percent lower than the norm, out of a total float 770,165,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher 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 investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Time Warner Inc. (NYSE: TWX) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Time Warner Inc. (NYSE: TWX) now has a 50-day MA of $94.75 and 200-day MA of $83.99. It has traded in a 52-week range between $55.53 – 97.21 and today’s last price is 3.16%% lower than the 52 week high of $97.21.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings by at least 25% for a 3 year period.
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