Viacom Inc. (NASDAQ: VIAB) shares rose on Monday February 6 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
Investors turned cautious in early trading today with the Dow Jones Industrial Average DJIA, was off by 17 points, or 0.1%, to 20.054.
The S&P 500 SPX, -0.14% eased 5 points, or 0.2%, to 2,293, with seven of the 11 main sectors trading lower. Nearly all main sectors were trading lower, while materials and consumer staples led the losses.
The Nasdaq Composite COMP, -0.14% slipped 10 points, or 0.2%, at 5,144.
Viacom Inc. (NASDAQ: VIAB) had its price target raised by equities researchers at Wedbush from $39.00 to $41.00. With a rating of Neutral on the stock, Viacom Inc. has a 52-week high of $46.69. A number of other analysts have spoken on the stock in recent days, and Viacom Inc. has earned a consensus one-year price target of $42.74, higher than the opening price of $41.68.
Shares of Viacom Inc. (NASDAQ: VIAB) opened at $41.68 yesterday and traded in a range between, $41.60 and $42.30, and last traded at $42.30, a spike of $0.40 compared to the previous closing price.
Viacom Inc. (NASDAQ: VIAB) now has a market cap of 16.79B.
Viacom Inc. (NASDAQ: VIAB) Average Daily Trading Volume
161,116 shares crossed the trading desk yesterday, 109 percent below the norm, out of a total float 355,349,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, conversely, 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Viacom Inc. (NASDAQ: VIAB) 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.
Trades for Viacom Inc. (NASDAQ: VIAB) have ranged from $30.11 – 46.69, and the stock now has a 50-day MA of $38.38 and 200-day MA of $38.86. Today’s last price is 9.40%% lower than the 52 week high of $46.69.
Earnings growth is a crucial factor to consider when buying stocks and investors look for companies that have grown their earnings by at least 25% for the past 3 years.
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