Workday Inc. (NYSE: WDAY) shares were down in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
Workday Inc. (NYSE: WDAY) had its price target increased by equities researchers at Canaccord Genuity from $98.00 to $110.00. With a rating of Buy on the stock, the company has a 52-week high of $92.46. As a means of comparison, a number of other analysts have spoken on the company recently, and Workday Inc. has earned a consensus one-year price target of $86.97, less than the opening price of $91.76, a difference of 9.56 percent.
Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.
The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.
The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.
The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298
Workday Inc. (NYSE: WDAY) shares last traded at $90.94, which is a dip of $0.75 per share or -0.01 from the previous closing price. Opening at $91.76, they ranged from $90.60 and $92.11 throughout the day.
Workday Inc. (NYSE: WDAY) now has a market cap of 18.19B.
Workday Inc.Trading Volume
279,724 shares crossed the trading desk yesterday, below the average, out of a total float 114,332,000. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to pinpoint large volume aggregation or dissemination by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater 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.
Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Workday Inc. 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.
With that in mind, Workday Inc. (NYSE: WDAY) now has a 50-day MA of $86.38 and 200-day MA of $79.17. It has traded in a 52-week range between $47.32 – 92.46 and today’s last price is 0.02% lower than the 52 week high of $92.46.
Earnings growth is a critical factor to consider when buying stocks and investors seek companies that have increased their earnings at least 25% or more over 3 consecutive years.
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