United Parcel Service Inc. (NYSE: UPS) shares rose on Tuesday Dec 13 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at JPMorgan Chase & Co. initiated coverage on United Parcel Service Inc. (NYSE: UPS) stock, starting the company at Neutral. With a rating of Neutral on the shares, United Parcel Service Inc. has a 52-week high of $120.44. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $114.05, a decrease compared to the opening price of $120.35, a difference of 9.48 percent. After beginning or initiating coverage, analysts and brokerage firms will subsequently re periodic updates. Changes in price targets are not unheard of.
United Parcel Service Inc. (NYSE: UPS) shares last traded at $120.25, which is a jump of $0.12 or 0.10% over the previous closing price. Opening at $120.35, they varied from $119.91 and $120.43 throughout the day.
United Parcel Service Inc. (NYSE: UPS) currently has a market cap of 104.94B.
United Parcel Service Inc. (NYSE: UPS) Average Daily Trading Volume
213,637 shares traded hands yesterday, below the norm, out of a total float 691,649,000. Momentum traders often use swings in trading volume to determine heavy volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive cue 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.
Institutional investors such as these retain substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them buying a stock you are researching.
United Parcel Service Inc. (NYSE: UPS) 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 influence— traders can make educated trades.
Trades for United Parcel Service Inc. (NYSE: UPS) have ranged from $87.30 – 120.44, and the stock now has a 50-day MA of $113.07 and 200-day MA of $109.30. Today’s last price is 0.16%% under the 52 week high of $120.44.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more over 3 consecutive years.
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