Morgan Stanley (NYSE: MS) shares rose on Monday Dec 5 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at HSBC initiated coverage on Morgan Stanley (NYSE: MS) stock, starting the company at Hold. With a rating of Hold on the shares, Morgan Stanley has a 52-week high of $42.56. The one-year price target of $38.52 is less than the opening price of $42.30, resulting a fair amount of other analysts to comment on the stock in recent days. Analysts and brokerage firms will subsequently re periodic updates after beginning or initiating coverage. Price changes targets are not uncommon.
Shares of Morgan Stanley (NYSE: MS) opened at $42.30 on Tuesday and has traded in a range between, $42.05 and $42.56, and last traded at $42.51, which is an increase of $0.68 or 1.63% compared to the previous closing price.
Morgan Stanley (NYSE: MS) now has a market cap of 79.62B.
Morgan Stanley (NYSE: MS) Average Daily Trading Volume
The stock’s average daily volume is 12,279,500 shares out of a total float 1,336,108,000 and some 1,640,160 shares traded hands yesterday, lower than the average. Momentum traders often use upticks in trading volume to determine large volume growth or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
While an increase in trading for short periods 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 cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
Morgan Stanley (NYSE: MS) 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.
With that in mind, Morgan Stanley (NYSE: MS) now has a 50-day MA of $36.52 and 200-day MA of $30.83. It has traded in a 52-week range between $21.16 – 42.5600 and today’s last price is 0.11%% lower than the 52 week high of $42.56.
Earnings growth is an important factor to look at when investing in stocks and investors seek companies that have raised their earnings by at least 25% for the past 3 years.
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