United Parcel Service, Inc. (NYSE: UPS) shares rose in value on Wednesday February 8 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 U.S. stocks traded modestly lower on Wednesday, as losses in energy shares following a drop in oil prices and a slide in financials weighed on the main indexes.
The S&P 500 index SPX, -0.17% declined 6 points, or 0.3%, to 2,286, with six of the main sectors trading lower. Energy and financials were leading the losses, down more than 1%.
The Dow Jones Industrial Average DJIA, -0.26% was down 65 points, or 0.3%, to 20,021, a day after the blue-chip index set an intraday high at 10,155.35. The Nasdaq Composite COMP, -0.13% retreated from an all-time high set on Tuesday, falling 23 points, or 0.4%, to 5,650.
Analysts at Aegis upgraded shares of United Parcel Service, Inc. (NYSE: UPS) from Hold to Buy today. Aegis currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have spoken on the company in recent days, and the company has earned a consensus one-year price target of $114.61, higher than the opening price of $105.81, a difference of 10.82 percent. United Parcel Service, Inc. stock has a 52-week high of $120.44. Usually, after analysts issue an upgrade report on a stock, they will subsequently issue recurring updates, usually followed by a price target change.
Yesterday United Parcel Service, Inc. (NYSE: UPS) shares last traded at $105.93, which represents an increase of $0.24 over the previous closing price. Opening at $105.81, they ranged from $105.55 and $106.14 throughout the day.
United Parcel Service, Inc. (NYSE: UPS) now has a market cap of 91.95B.
United Parcel Service, Inc. (NYSE: UPS) Average Daily Trading Volume
The stock’s average daily volume is 2,984,210 shares out of a total float 691,283,000 and some 331,535 shares crossed the trading desk yesterday, 50 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as investors 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 just refers to 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 corroboration to see them buying a stock you’re considering.
United Parcel Service, Inc. (NYSE: UPS) 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 United Parcel Service, Inc. (NYSE: UPS) have ranged from $94.22 – 120.44, and the stock now has a 50-day MA of $113.78 and 200-day MA of $111.45. Today’s last price is 12.05%% under the 52 week high of $120.44.
Earnings growth is a crucial factor to research when buying stocks and investors watch for companies that have grown their earnings at least 25% or more for the past 3 years.
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