Nordson Corp. (NASDAQ: NDSN) shares rose in value Wednesday Nov 30 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
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.
Analysts at Zacks Investment Research upgraded shares of Nordson Corp. (NASDAQ: NDSN) from Sell to Hold today. With a rating of Hold on the shares, Nordson Corp. has a 52-week high of $110.65. The one-year price target of $106.13 is lower than the opening price of $107.78, that has caused a fair amount of other analysts to comment on the company in recent days. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Nordson Corp. (NASDAQ: NDSN) shares last traded at $107.94, a spike of $0.32 or 0.30% compared to the previous closing price. Opening at $107.78, they ranged from $107.67 and $108.89 throughout the day.
Nordson Corp. (NASDAQ: NDSN) currently has a market cap of 6.17B.
Nordson Corp. (NASDAQ: NDSN) Average Daily Trading Volume
The stock’s average daily volume is 230,103 shares out of a total float 50,278,000 and some 15,971 shares crossed the trading desk yesterday, below normal. Trading volume is likely to increase in the next few days as momentum traders often use swings in trading volume to determine large volume growth or distribution by institutional investors.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series 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 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 that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are considering.
Nordson Corp. (NASDAQ: NDSN) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Nordson Corp. (NASDAQ: NDSN) now has a 50-day MA of $101.68 and 200-day MA of $93.05. It has traded in a 52-week range between $51.89 – 110.65 and today’s last price is 2.45%% lower than the 52 week high of $110.65.
Earnings growth is an important factor to consider when buying stocks and investors identify companies that have grown their earnings at least 25% or more for 3 consecutive years.
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