Agrium Inc. (NYSE: AGU) shares rose on Monday February 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 U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
RBC Capital Markets analysts reiterated its Buy rating on Agrium Inc. (NYSE: AGU) in a 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 $111.88. The one-year price target of $105.08 is less than the opening price of $105.69, causing a fair amount of other analysts to issue statements on the stock in recent days. Usually, after analysts assign a “reiterated rating” report on a stock, they will subsequently issue other updates, often followed by a price target change.
Yesterday Agrium Inc. (NYSE: AGU) shares last traded at $107.20, which is an increase of $1.50 from the previous closing price. Opening at $105.69, they ranged from $104.68 and $107.35 throughout the day.
Agrium Inc. (NYSE: AGU) currently has a market cap of 14.79B.
Agrium Inc. (NYSE: AGU) Average Daily Trading Volume
The stock’s average daily volume is 424,869 shares out of a total float 137,884,000 and some 121,268 shares crossed the trading desk yesterday, 113 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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.
These instituitional investors have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Agrium Inc. (NYSE: AGU) 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, Agrium Inc. (NYSE: AGU) now has a 50-day MA of $103.63 and 200-day MA of $96.39. It has traded in a 52-week range between $80.45 – 111.88 and today’s last price is 4.18%% lower than the 52 week high of $111.88.
Earnings growth is a critical factor to research when investing in stocks and investors identify companies that have raised their earnings by at least 25% over the past 3 years.
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