Cisco Systems Inc. (NASDAQ: CSCO) shares rose 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.
RBC Capital Markets analysts reiterated its Outperform rating on Cisco Systems Inc. (NASDAQ: CSCO) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Outperform on the stock, Cisco Systems Inc. has a 52-week high of $31.95. The one-year price target of $33.11 is above the opening price of $29.76, that has caused a fair amount of other analysts to issue statements on the company in recent days. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Cisco Systems Inc. (NASDAQ: CSCO) shares last traded at $29.92, which represents a jump of $0.09 or 0.30% over the previous closing price. Opening at $29.76, they fluctuated from $29.68 and $29.94 throughout the day.
Cisco Systems Inc. (NASDAQ: CSCO) now has a market cap of 150.19B.
Cisco Systems Inc. (NASDAQ: CSCO) Average Daily Trading Volume
2,414,188 shares crossed the trading desk yesterday, below normal, out of a total float 5,016,194,000. Swing traders often use increases in trading volume to pinpoint large volume accumulation or circulation by institutional investors, so look for trading volume to pick up in the coming days.
However, one day of heavy buy side trading is not enough to determine a trend. So market traders will continue to look for institutional sponsorship as a cue 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.
Institutional investors such as these have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.
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 spotting 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 $22.46 – 31.95, and the stock now has a 50-day MA of $30.55 and 200-day MA of $30.16. Today’s last price is 6.35%% under the 52 week high of $31.95.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings at least 25% or more for 3 consecutive years.
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