UBS AG (NYSE: UBS) shares rose in value on Tuesday February 7 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Analysts at Bank of America Corporation upgraded shares of UBS AG (NYSE: UBS) from Underperform to Neutral today. With a rating of Neutral on the shares, the company has a 52-week high of $17.44. The one-year price target of $16.00 is above the opening price of $15.96, that has caused a number of other analysts to comment on the stock in recent days. Share prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday UBS AG (NYSE: UBS) shares last traded at $16.01, which is an increase of $0.10 over the previous closing price. Opening at $15.96, they ranged from $15.93 and $16.05 throughout the day.
UBS AG (NYSE: UBS) currently has a market cap of 59.08B.
UBS AG (NYSE: UBS) Average Daily Trading Volume
311,992 shares crossed the trading desk yesterday, 64 percent below normal, out of a total float 3,431,810,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
UBS AG (NYSE: UBS) 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 UBS AG (NYSE: UBS) have ranged from $11.93 – 17.44, and the stock now has a 50-day MA of $16.35 and 200-day MA of $14.87. Today’s last price is 8.21%% under the 52 week high of $17.44.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have been successful at growing their earnings by at least 25% over the past 3 years.
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