FedEx Corp. (NYSE: FDX) shares rose on Tuesday Dec 13 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at JPMorgan Chase & Co. initiated coverage on FedEx Corp. (NYSE: FDX) stock, starting the company at Overweight. With a rating of Overweight on the shares, the company has a 52-week high of $199.48. The one-year price target of $194.75 is less than the opening price of $198.66, causing a fair amount of other analysts to comment on the company in recent days. Changes in price targets are not uncommon as analysts and brokerage firms will re periodic updates after initiating coverage,.
FedEx Corp. (NYSE: FDX) shares last traded at $199.19, which represents an increase of $1.55 or 0.78% from the previous closing price. Opening at $198.66, they varied from $198.22 and $199.48 throughout the day.
FedEx Corp. (NYSE: FDX) currently has a market cap of 52.94B.
FedEx Corp. (NYSE: FDX) Average Daily Trading Volume
203,766 shares traded hands yesterday, below normal, out of a total float 245,354,000. Momentum traders often use upticks in trading volume to pinpoint large volume accumulation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show 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 substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
FedEx Corp. (NYSE: FDX) 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 more impactful decisions on trades when they track the activity of professional investors.
With that in mind, FedEx Corp. (NYSE: FDX) now has a 50-day MA of $184.60 and 200-day MA of $169.26. It has traded in a 52-week range between $119.71 – 199.48 and today’s last price is 0.15%% lower than the 52 week high of $199.48.
Earnings growth is an important factor to look at when buying stocks and investors identify companies that have raised their earnings by at least 25% for the past 3 years.
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