BorgWarner Inc. (NYSE: BWA) shares closed lower on Tuesday Nov 22 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.
The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.
Analysts at Berenberg Bank initiated coverage on BorgWarner Inc. (NYSE: BWA) stock, starting the company at Sell. Berenberg Bank currently has a rating of Sell on the stock. The one-year price target of $39.29 is above the opening price of $35.89, causing a fair amount of other analysts to issue statements on the company recently. Looking back over the last year, BorgWarner Inc. stock has a high of $44.35. Price changes targets are not uncommon as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Shares of BorgWarner Inc. (NYSE: BWA) opened at $35.89 on Tuesday and has traded in a range between, $35.58 and $36.03, and last traded at $35.58, a decrease of $0.58 per share or -1.60% over the previous closing price.
BorgWarner Inc. (NYSE: BWA) currently has a market cap of 7.58B.
BorgWarner Inc. (NYSE: BWA) Average Daily Trading Volume
166,545 shares traded hands yesterday, lower than the norm, out of a total float 200,677,000. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to pinpoint substantial volume growth or dissemination by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to demonstrate 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 retain teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
BorgWarner Inc. (NYSE: BWA) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, BorgWarner Inc. (NYSE: BWA) now has a 50-day MA of $35.06 and 200-day MA of $33.75. It has traded in a 52-week range between $27.52 – 44.35 and today’s last price is 19.77%% lower than the 52 week high of $44.35.
Earnings growth is a crucial factor to consider when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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