American Express Company (NYSE: AXP) shares rose in value on Tuesday January 17 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade, the Dow Jones Industrial Average was 47 points lower, or 0.24% to 19838, the S&P 500 fell 7 points, or 0.29% to 2267, while the Nasdaq was down 19 points, or 0.35% to 5554.
Analysts at J P Morgan Chase upgraded shares of American Express Company (NYSE: AXP) from Neutral to Overweight today. J P Morgan Chase currently has a rating of Overweight on the stock. The one-year price target of $77.80 is higher than the opening price of $77.40, that has caused a number of other analysts to report on the company in recent days. Looking back over the last year, American Express Company stock has a high of $78.00. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of American Express Company (NYSE: AXP) opened at $77.40 yesterday and traded in a range between, $76.68 and $77.70, and last traded at $76.80, a jump of $0.18 from the previous closing price.
American Express Company (NYSE: AXP) currently has a market cap of 70.29B.
American Express Company (NYSE: AXP) Average Daily Trading Volume
The stock’s average daily volume is 4,741,180 shares out of a total float 761,382,000 and some 1,086,089 shares traded hands yesterday, 122 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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.
These instituitional investors retain teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
American Express Company (NYSE: AXP) 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.
With that in mind, American Express Company (NYSE: AXP) now has a 50-day MA of $74.45 and 200-day MA of $67.34. It has traded in a 52-week range between $50.27 – 78.00 and today’s last price is 1.54%% lower than the 52 week high of $78.00.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% over a 3 year period.
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