Paypal Holdings Inc. (NASDAQ: PYPL) shares fell back in value Thursday Dec 22 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 mostly flat on Thursday. The Dow Jones Industrial Average DJIA, -0.15% fell 15 points to 19,928, a drop of less than 0.1%. The S&P 500 SPX, -0.22% fell 1 point, or 0.05%, to 2,264. The Nasdaq Composite Index COMP, -0.23% fell 1 point to 5,470.21, essentially unchanged on the day.
Analysts at Zacks Investment Research upgraded shares of Paypal Holdings Inc. (NASDAQ: PYPL) from Hold to Buy today. The company currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have commented on the stock in recent days, and Paypal Holdings Inc. has earned a consensus one-year price target of $46.23, higher than the opening price of $40.04, a difference of 11.59 percent. Paypal Holdings Inc. stock has a 52-week high of $44.52. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of Paypal Holdings Inc. (NASDAQ: PYPL) opened at $40.04 on Tuesday and has traded in a range between, $39.66 and $40.09, and last traded at $39.89, a decrease of $0.20 per share or -0.50% from the previous closing price.
Paypal Holdings Inc. (NASDAQ: PYPL) currently has a market cap of 47.07B.
Paypal Holdings Inc. (NASDAQ: PYPL) Average Daily Trading Volume
665,516 shares traded hands yesterday, below the average, out of a total float 1,108,350,000. Swing traders often use increases in trading volume to identify substantial volume accumulation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
However, one day of significant buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
Paypal Holdings Inc. (NASDAQ: PYPL) 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.
With that in mind, Paypal Holdings Inc. (NASDAQ: PYPL) now has a 50-day MA of $39.87 and 200-day MA of $38.91. It has traded in a 52-week range between $30.52 – 44.52 and today’s last price is 10.40%% lower than the 52 week high of $44.52.
Earnings growth is a critical factor to research when investing in stocks and investors look for companies that have grown their earnings at least 25% or more over 3 consecutive years.
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