Pinnacle West Capital Corporation (NYSE: PNW) shares rose in value on Tuesday January 17 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade, the Dow Jones Industrial Average was 47 points lower, or 0.24% to 19838, the S&P 500 fell 7 points, or 0.29% to 2267, while the Nasdaq was down 19 points, or 0.35% to 5554.
Analysts at Goldman Sachs upgraded shares of Pinnacle West Capital Corporation (NYSE: PNW) from Sell to Neutral today. Goldman Sachs currently has a rating of Neutral on the stock. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $77.14, lower than the opening price of $77.83. Pinnacle West Capital Corporation stock has a 52-week high of $82.78. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Pinnacle West Capital Corporation (NYSE: PNW) shares last traded at $78.16, which represents a spike of $0.90 compared to the previous closing price. Opening at $77.83, they ranged from $77.50 and $78.24 throughout the day.
Pinnacle West Capital Corporation (NYSE: PNW) currently has a market cap of 8.70B.
Pinnacle West Capital Corporation (NYSE: PNW) Average Daily Trading Volume
58,277 shares traded hands yesterday, 98 percent lower than the average, out of a total float 110,767,000. 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
Pinnacle West Capital Corporation (NYSE: PNW) 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 Pinnacle West Capital Corporation (NYSE: PNW) have ranged from $62.51 – 82.78, and the stock now has a 50-day MA of $76.60 and 200-day MA of $76.58. Today’s last price is 5.58%% under the 52 week high of $82.78.
Earnings growth is a critical factor to research when investing in stocks and investors identify companies that have increased their earnings at least 25% or more for a 3 year period.
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