Autodesk Inc. (NASDAQ: ADSK) shares fell on Wednesday Nov 30 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 Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.
The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.
The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.
Wedbush analysts reiterated its Neutral rating on Autodesk Inc. (NASDAQ: ADSK) in a note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Neutral on the shares. The one-year price target of $69.69 is lower than the opening price of $72.71, causing a number of other analysts to report on the company recently. Looking back over the last year, Autodesk Inc. stock has a high of $78.58. Usually, after analysts give a “reiterated rating” report on a stock, they will subsequently issue sporadic updates, such as a price target change.
Autodesk Inc. (NASDAQ: ADSK) shares last traded at $71.06, which is a drop of $4.20 per share or -5.58% from the previous closing price. Opening at $72.71, they ranged from $70.55 and $74.72 throughout the day.
Autodesk Inc. (NASDAQ: ADSK) currently has a market cap of 15.77B.
Autodesk Inc. (NASDAQ: ADSK) Average Daily Trading Volume
1,599,330 shares traded hands yesterday, below normal, out of a total float 195,203,000. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to identify substantial volume accumulation or circulation by institutional investors.
As with all potential breakouts, investors watch for volume to be at least 40%-50% greater than normal on the breakout to indicate 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.
Institutional investors such as these retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Autodesk Inc. (NASDAQ: ADSK) 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 can make well planned trades when they follow the trading habits of professional investors.
With that in mind, Autodesk Inc. (NASDAQ: ADSK) now has a 50-day MA of $72.33 and 200-day MA of $64.22. It has traded in a 52-week range between $41.60 – 78.58 and today’s last price is 9.57%% lower than the 52 week high of $78.58.
Earnings growth is a crucial factor to consider when buying stocks and investors seek companies that have raised their earnings by at least 25% for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.