Old Dominion Freight Line, Inc. (NASDAQ: ODFL) shares slid back in value on Tuesday February 7 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Analysts at Zacks Investment Research upgraded shares of Old Dominion Freight Line, Inc. (NASDAQ: ODFL) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $91.77. A number of other analysts have commented on the company in recent days, and Old Dominion Freight Line, Inc. has earned a consensus one-year price target of $92.67, higher than the opening price of $89.67, a difference of 10.37 percent. Usually, after analysts issue an upgrade report on a stock, they will later issue other revisions, often followed by a price target change.
Shares of Old Dominion Freight Line, Inc. (NASDAQ: ODFL) opened at $89.67 yesterday trading between $89.30 and $89.82, and last traded at $89.35, which represents a drop of $0.10 compared to the previous closing price.
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) now has a market cap of 7.36B.
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) Average Daily Trading Volume
20,873 shares crossed the trading desk yesterday, 86 percent below the average, out of a total float 65,081,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Old Dominion Freight Line, Inc. (NASDAQ: ODFL) have ranged from $56.74 – 91.77, and the stock now has a 50-day MA of $87.61 and 200-day MA of $77.58. Today’s last price is 2.63%% lower than the 52 week high of $91.77.
Earnings growth is a crucial factor to research when investing in stocks and investors watch for companies that have been successful at growing their earnings by at least 25% over the past 3 years.
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