Zacks Investment Research (News Corp.: NASDAQ) shares fell back in value Wednesday Dec 28 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks were little changed on Wednesday, as investors found few reasons to keep pushing shares higher towards the 20,000 mark.
The Dow Jones Industrial Average DJIA, -0.11% rose 3.1 points to 19,949, essentially unchanged on the day. The S&P 500 SPX, -0.39% lost 3 points, or 0.1%, to 2,266 while the Nasdaq Composite Index COMP, -0.59% slipped 6.4 points, or 0.1%, to 5,482.
Analysts at Zacks Investment Research upgraded shares of Zacks Investment Research (News Corp.: NASDAQ) from Sell to Hold today. Zacks Investment Research currently has a rating of Hold on the stock. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and News Corp. has secured a consensus one-year price target of $32.60, above the opening price of $12.25. News Corp. stock has a 52-week high of $15.22. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Zacks Investment Research (News Corp.: NASDAQ) shares last traded at $12.15, which represents a drop of $0.10 per share or -0.82% from the previous closing price. Opening at $12.25, they fluctuated from $12.10 and $12.30 throughout the day.
Zacks Investment Research (News Corp.: NASDAQ) currently has a market cap of 7.06B.
Zacks Investment Research (News Corp.: NASDAQ) Average Daily Trading Volume
48,735 shares traded hands yesterday, lower than the average, out of a total float 499,921,000. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to determine substantial volume growth or distribution by institutional investors.
While an increase in trading for short periods will not mean much, conversely, 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 crucial.
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 substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Zacks Investment Research (News Corp.: NASDAQ) 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 the best trades when they follow the trading habits of professional investors.
With that in mind, Zacks Investment Research (News Corp.: NASDAQ) now has a 50-day MA of $12.16 and 200-day MA of $13.04. It has traded in a 52-week range between $10.73 – 15.22 and today’s last price is 20.17%% lower than the 52 week high of $15.22.
Earnings growth is an important factor to consider when investing in stocks and investors identify companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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