Wex Inc. (NYSE: WEX) shares rose in value Thursday Dec 1 with 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 opened with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Zacks Investment Research upgraded shares of Wex Inc. (NYSE: WEX) from Hold to Buy today. With a rating of Buy on the stock, Wex Inc. has a 52-week high of $114.59. The one-year price target of $113.54 is higher than the opening price of $111.17, causing a number of other analysts to report on the company in recent days. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Wex Inc. (NYSE: WEX) opened at $111.17 on Tuesday and has traded in a range between, $110.28 and $111.55, and last traded at $110.69, which represents a spike of $0.18 or 0.16% over the previous closing price.
Wex Inc. (NYSE: WEX) now has a market cap of 4.73B.
Wex Inc. (NYSE: WEX) Average Daily Trading Volume
32,035 shares traded hands yesterday, lower than normal, out of a total float 34,318,000. Swing traders often use increases in trading volume to determine large volume accumulation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to indicate 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.
Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
Wex Inc. (NYSE: WEX) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for Wex Inc. (NYSE: WEX) have ranged from $54.42 – 114.59, and the stock now has a 50-day MA of $105.61 and 200-day MA of $98.29. Today’s last price is 3.40%% lower than the 52 week high of $114.59.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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