Alphabet Inc. (NASDAQ: GOOGL) 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.
Alphabet Inc. (NASDAQ: GOOGL) had its Buy rating reiterated by equities researchers at Jefferies Group in a research note to investors. With a rating of Buy on the stock, the company has a 52-week high of $839.00. The one-year price target of $964.98 is above the opening price of $831.00, causing a fair amount of other analysts to comment on the company recently. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Alphabet Inc. (NASDAQ: GOOGL) shares last traded at $830.94, an increase of $1.41 compared to the previous closing price. Opening at $831.00, they varied from $829.52 and $834.65 throughout the day.
Alphabet Inc. (NASDAQ: GOOGL) currently has a market cap of 572.72B.
Alphabet Inc. (NASDAQ: GOOGL) Average Daily Trading Volume
1,290,182 shares crossed the trading desk yesterday, 35 percent lower than normal, out of a total float 595,674,000. 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 one day 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
Alphabet Inc. (NASDAQ: GOOGL) 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 winning trades.
With that in mind, Alphabet Inc. (NASDAQ: GOOGL) now has a 50-day MA of $797.67 and 200-day MA of $786.22. It has traded in a 52-week range between $672.66 – 839.00 and today’s last price is 0.96%% lower than the 52 week high of $839.00.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have increased their earnings at least 25% or more for 3 consecutive years.
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