Cisco Systems, Inc. (NASDAQ: CSCO) shares fell on Tuesday February 14 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 U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Cisco Systems, Inc. (NASDAQ: CSCO) had its Buy rating reiterated by equities researchers at Drexel Hamilton in a research note to investors. Drexel Hamilton currently has a rating of Buy on the shares. A number of other analysts have commented on the company recently, and Cisco Systems, Inc. has earned a consensus one-year price target of $33.26, above the opening price of $31.87, a difference of 10.44 percent. Cisco Systems, Inc. stock has a 52-week high of $32.00. Typically, after analysts assign a “reiterated rating” report on a stock, they will subsequently issue other updates, often followed by a price target change.
Shares of Cisco Systems, Inc. (NASDAQ: CSCO) opened at $31.87 yesterday and traded in a range between, $31.83 and $31.94, and last traded at $31.85, which is a dip of $0.12 from the previous closing price.
Cisco Systems, Inc. (NASDAQ: CSCO) now has a market cap of 159.88B.
Cisco Systems, Inc. (NASDAQ: CSCO) Average Daily Trading Volume
1,816,133 shares crossed the trading desk yesterday, 38 percent lower than the average, out of a total float 5,016,445,000. lower than normal. Look for trading volume to pick up in the coming days as momentum 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, however, 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.
Institutional investors such as these retain teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.
Cisco Systems, Inc. (NASDAQ: CSCO) 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.
Trades for Cisco Systems, Inc. (NASDAQ: CSCO) have ranged from $25.19 – 32.00, and the stock now has a 50-day MA of $30.62 and 200-day MA of $30.74. Today’s last price is 0.47%% below the 52 week high of $32.00.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% over 3 consecutive years.
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