Alliance Data Systems Corp. (NYSE: ADS) shares rose on Monday Dec 5 with 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 Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Jefferies Group reiterated a Buy rating on shares of Alliance Data Systems Corp. (NYSE: ADS) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Buy on the stock, Alliance Data Systems Corp. has a 52-week high of $284.96. The one-year price target of $247.96 is higher than the opening price of $219.95, that has caused a number of other analysts to report on the company recently. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Alliance Data Systems Corp. (NYSE: ADS) opened at $219.95 on Tuesday trading between $219.25 and $223.79, and last traded at $223.65, which is an increase of $4.94 or 2.26% compared to the previous closing price.
Alliance Data Systems Corp. (NYSE: ADS) currently has a market cap of 12.92B.
Alliance Data Systems Corp. (NYSE: ADS) Average Daily Trading Volume
58,541 shares crossed the trading desk yesterday, lower than the average, out of a total float 51,307,000. Momentum traders often use upticks in trading volume to pinpoint large volume aggregation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
While higher trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Alliance Data Systems Corp. (NYSE: ADS) 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.
Traders are able to make make well planned trades when they follow the activity of professional investors.
With that in mind, Alliance Data Systems Corp. (NYSE: ADS) now has a 50-day MA of $212.61 and 200-day MA of $212.10. It has traded in a 52-week range between $176.63 – 284.96 and today’s last price is 21.52%% lower than the 52 week high of $284.96.
Earnings growth is a crucial factor to research when buying stocks and investors look for companies that have grown their earnings at least 25% or more for the past 3 years.
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