Old Dominion Freight Line Inc. (NASDAQ: ODFL) shares rose in value Thursday Dec 1 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 opened with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
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 shares, the company has a 52-week high of $89.10. The one-year price target of $81.17 is lower than the opening price of $87.69, that has caused a number of other analysts to report on the company recently. Usually, after analysts assign an upgrade report on a stock, they will subsequently issue periodic updates, such as a price target change.
Shares of Old Dominion Freight Line Inc. (NASDAQ: ODFL) opened at $87.69 on Tuesday trading between $86.70 and $88.21, and last traded at $87.73, which represents a spike of $0.43 or 0.49% over the previous closing price.
Old Dominion Freight Line Inc. (NASDAQ: ODFL) currently has a market cap of 7.23B.
Old Dominion Freight Line Inc. (NASDAQ: ODFL) Average Daily Trading Volume
26,657 shares traded hands yesterday, below the norm, out of a total float 65,124,000. Swing traders often use increases in trading volume to identify substantial volume aggregation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for Old Dominion Freight Line Inc. (NASDAQ: ODFL) have ranged from $48.92 – 89.10, and the stock now has a 50-day MA of $77.02 and 200-day MA of $68.61. Today’s last price is 1.54%% under the 52 week high of $89.10.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings at least 25% or more over 3 consecutive years.
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