The Home Depot Inc. (NYSE: HD) shares fell on Wednesday Nov 30 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.
The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.
The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.
Analysts at Wedbush reiterated a Neutral rating on shares of The Home Depot Inc. (NYSE: HD) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. The company currently has a rating of Neutral on the stock. The one-year price target of $146.73 is higher than the opening price of $129.34, resulting a fair amount of other analysts to comment on the stock recently. Looking back over the last 52 weeks, The Home Depot Inc. stock has a high of $139.00. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
The Home Depot Inc. (NYSE: HD) shares last traded at $129.11, which is a decrease of $0.51 per share or -0.39% from the previous closing price. Opening at $129.34, they varied from $128.99 and $130.00 throughout the day.
The Home Depot Inc. (NYSE: HD) now has a market cap of 157.28B.
The Home Depot Inc. (NYSE: HD) Average Daily Trading Volume
604,608 shares traded hands yesterday, lower than the average, out of a total float 1,216,833,000. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to pinpoint large volume aggregation or circulation by institutional investors.
However, a single day of high volume buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
The Home Depot Inc. (NYSE: HD) 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 how they influence moving averages,it allows for traders to make more effective judgments on trades.
Trades for The Home Depot Inc. (NYSE: HD) have ranged from $109.62 – 139.00, and the stock now has a 50-day MA of $125.86 and 200-day MA of $130.38. Today’s last price is 7.12%% under the 52 week high of $139.00.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more over the past 3 years.
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