Illinois Tool Works Inc. (NYSE: ITW) shares fell on Monday Nov 21 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, stocks were set to open up this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Analysts at Goldman Sachs Group Inc. downgraded shares of Illinois Tool Works Inc. (NYSE: ITW) from Buy to Neutral in a research note to investors today. The company currently has a rating of Neutral on the shares. As a means of comparison, a number of other analysts have spoken on the company in recent days, and Illinois Tool Works Inc. has secured a consensus one-year price target of $120.20, a decrease compared to the opening price of $123.36. Illinois Tool Works Inc. stock has a 52-week high of $125.15. Downgrades are more common when analysts feel that the future prospects for the security have dropped from the original recommendation, usually caused by a material and major change in the company’s procedures, future direction or industry.
Illinois Tool Works Inc. (NYSE: ITW) shares last traded at $123.85, a dip of $0.11 per share or -0.09% compared to the previous closing price. Opening at $123.36, they fluctuated from $123.36 and $124.44 throughout the day.
Illinois Tool Works Inc. (NYSE: ITW) currently has a market cap of 43.47B.
Illinois Tool Works Inc. (NYSE: ITW) Average Daily Trading Volume
The stock’s average daily volume is 1,631,920 shares out of a total float 350,478,000 and some 143,192 shares crossed the trading desk yesterday, lower than the norm. Swing traders often use swings in trading volume to determine large volume accumulation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
While higher trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue 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.
These professional investors have teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.
Illinois Tool Works Inc. (NYSE: ITW) 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 are able to make make educated trades when they follow the trading habits of professional investors.
With that in mind, Illinois Tool Works Inc. (NYSE: ITW) now has a 50-day MA of $117.35 and 200-day MA of $113.07. It has traded in a 52-week range between $79.15 – 125.150 and today’s last price is 1.04%% lower than the 52 week high of $125.15.
Earnings growth is a critical factor to research when investing in stocks and investors look for companies that have increased their earnings at least 25% or more for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.