Workday, Inc. (NYSE: WDAY) 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 William Blair reiterated an Outperform rating on shares of Workday, Inc. (NYSE: WDAY) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Outperform on the shares. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $81.78, above the opening price of $80.13, a difference of 10.11 percent. Workday, Inc. stock has a 52-week high of $93.35. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Workday, Inc. (NYSE: WDAY) opened at $80.13 yesterday trading between $79.91 and $81.16, and last traded at $80.89, which is an increase of $0.77 over the previous closing price.
Workday, Inc. (NYSE: WDAY) now has a market cap of 16.26B.
Workday, Inc. (NYSE: WDAY) Average Daily Trading Volume
1,403,944 shares traded hands yesterday, 22 percent lower than the average, out of a total float 126,250,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
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 teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.
Workday, Inc. (NYSE: WDAY) 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 Workday, Inc. (NYSE: WDAY) have ranged from $47.32 – 93.35, and the stock now has a 50-day MA of $73.06 and 200-day MA of $81.35. Today’s last price is 13.35%% lower than the 52 week high of $93.35.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more over a 3 year period.
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