Palo Alto Networks Inc. (NYSE: PANW) shares fell on Friday Dec 2 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, U.S. stocks edged lower on Friday, with major indexes on track for a weekly decline.
The Dow Jones Industrial Average DJIA, -0.14% fell 23 points, or 0.1%, to 19,169, while the S&P 500 SPX, +0.09% lost 1.2 point to 2,190, a move of less than 0.1%. The Nasdaq Composite COMP, -0.15% fell 5.3 points, or 0.1%, to 5,247.
Analysts at Summit Redstone initiated coverage on Palo Alto Networks Inc. (NYSE: PANW) stock, starting the company at Hold. With a rating of Hold on the shares, Palo Alto Networks Inc. has a 52-week high of $194.63. As a means of comparison, a number of other analysts have issued reports on the stock recently, and the company has earned a consensus one-year price target of $176.06, above the opening price of $128.48, a difference of 13.85 percent. After initiating coverage,, analysts and brokerage firms will subsequently re periodic updates. Price changes targets are not uncommon.
Shares of Palo Alto Networks Inc. (NYSE: PANW) opened at $128.48 on Tuesday and has traded in a range between, $127.02 and $129.34, and last traded at $127.09, a drop of $2.53 per share or -1.95% from the previous closing price.
Palo Alto Networks Inc. (NYSE: PANW) now has a market cap of 11.65B.
Palo Alto Networks Inc. (NYSE: PANW) Average Daily Trading Volume
348,212 shares traded hands yesterday, below normal, out of a total float 88,092,000. Momentum traders often use increases in trading volume to identify large volume growth or circulation by institutional investors, so trading volume is likely to increase in the next few days.
As with all possible 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.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are considering.
Palo Alto Networks Inc. (NYSE: PANW) 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 track the activity of professional investors.
With that in mind, Palo Alto Networks Inc. (NYSE: PANW) now has a 50-day MA of $149.52 and 200-day MA of $140.28. It has traded in a 52-week range between $111.09 – 194.63 and today’s last price is 34.70%% lower than the 52 week high of $194.63.
Earnings growth is a crucial factor to research when buying stocks and investors look for companies that have increased their earnings by at least 25% for 3 consecutive years.
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