The Home Depot Inc. (NYSE: HD) shares rose on Thursday Nov 25 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.
Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
The Home Depot Inc. (NYSE: HD) had its price target increased by equities researchers at RBC Capital Markets from $145.00 to $146.00. With a rating of Outperform on the stock, the company has a 52-week high of $139.00. The one-year price target of $147.88 is higher than the opening price of $125.87, causing a number of other analysts to comment on the company in recent days.
Shares of The Home Depot Inc. (NYSE: HD) opened at $125.87 on Monday trading between $125.70 and $127.39, and last traded at $127.35, which is a spike of $2.02 or 1.61% over the previous closing price.
The Home Depot Inc. (NYSE: HD) now has a market cap of 157.34B.
The Home Depot Inc. (NYSE: HD) Average Daily Trading Volume
The stock’s average daily volume is 5,197,430 shares out of a total float 1,234,239,000 and some 1,710,094 shares crossed the trading desk yesterday, lower than the average. Investors often use swings in trading volume to pinpoint substantial volume accumulation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
As with all possible breakouts, investors watch for volume to be at least 40%-50% greater than normal on the breakout to demonstrate 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 buying a stock you are researching.
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 the moving averages they affect—it allows for traders to make more effective choices on trades.
With that in mind, The Home Depot Inc. (NYSE: HD) now has a 50-day MA of $125.64 and 200-day MA of $130.72. It has traded in a 52-week range between $109.62 – 139.000 and today’s last price is 8.39%% lower than 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 look for companies that have raised their earnings at least 25% or more over the past 3 years.
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