Volkswagen AG (VLKAY) Shares Tick Up after Upgrade at HSBC

Volkswagen AG (NASDAQ: VLKAY) shares rose in value Monday Nov 21 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, stocks were set to open higher this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.

Analysts at HSBC upgraded shares of Volkswagen AG (NASDAQ: VLKAY) from Hold to Buy today. HSBC currently has a rating of Buy on the stock. The one-year price target of $21.84 is a decrease compared to the opening price of $27.69, that has caused a fair amount of other analysts to report on the company recently. Looking back over the last year, Volkswagen AG stock has a high of $32.18. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.

Volkswagen AG (NASDAQ: VLKAY) shares last traded at $27.72, a jump of $0.62 or 2.29% from the previous closing price. Opening at $27.69, they varied from $27.64 and $27.76 throughout the day.

Volkswagen AG (NASDAQ: VLKAY) currently has a market cap of 69.48B.

Volkswagen AG (NASDAQ: VLKAY) Average Daily Trading Volume

The stock’s average daily volume is 131,249 shares out of a total float 1,190,100,000 and some 23,283 shares traded hands yesterday, below normal. Swing traders often use swings in trading volume to pinpoint substantial volume growth or distribution by institutional investors, so look for trading volume to pick up in the coming days.

However, just a day of significant buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Volkswagen AG (NASDAQ: VLKAY) 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 how they influence moving averages, traders are able to make make smarter trades.

With that in mind, Volkswagen AG (NASDAQ: VLKAY) now has a 50-day MA of $28.72 and 200-day MA of $29.16. It has traded in a 52-week range between $24.50 – 32.18 and today’s last price is 13.86%% lower than the 52 week high of $32.18.

Earnings growth is a crucial factor to look at when investing in stocks and investors look for companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.

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