Bristol-Myers Squibb Co. (BMY) Stock Up After Upgrade at Jefferies Group

Bristol-Myers Squibb Co. (NYSE: BMY) shares rose in value Monday Dec 19 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.

The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.

The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.

Analysts at Jefferies Group upgraded shares of Bristol-Myers Squibb Co. (NYSE: BMY) from Hold to Buy today. Jefferies Group currently has a rating of Buy on the stock. A number of other analysts have issued reports on the company in recent days, and the company has secured a consensus one-year price target of $62.11, above the opening price of $59.04. Bristol-Myers Squibb Co. stock has a 52-week high of $77.12. Share prices often trend to the upside on recommendations and new price targets of professional analysts.

Shares of Bristol-Myers Squibb Co. (NYSE: BMY) opened at $59.04 on Tuesday trading between $59.02 and $59.85, and last traded at $59.66, which represents a spike of $1.04 or 1.77% compared to the previous closing price.

Bristol-Myers Squibb Co. (NYSE: BMY) currently has a market cap of 99.71B.

Bristol-Myers Squibb Co. (NYSE: BMY) Average Daily Trading Volume

1,187,786 shares traded hands yesterday, lower than the average, out of a total float 1,668,823,000. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to pinpoint large volume accumulation or circulation by institutional investors.

While an increase in 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 expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors have substantial teams of analysts that investigate thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.

Bristol-Myers Squibb Co. (NYSE: BMY) 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 successful trades.

With that in mind, Bristol-Myers Squibb Co. (NYSE: BMY) now has a 50-day MA of $55.40 and 200-day MA of $61.62. It has traded in a 52-week range between $49.03 – 77.12 and today’s last price is 22.64%% lower than the 52 week high of $77.12.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% over a 3 year period.

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