A busy day for Pearson plc, Shaw Communications Inc., Spotify Technology S.A., being the prominent communication services stocks displaying higher volumes than usual.
Here's an update with information from the last trading session: Leading equity indices in the US rose as S&P 500 ended the session at 4,076.6 after a 1.46% gain. Dow Jones closed the day at 34,100, having gained 1.09%.
Why Trading Volume Matters
Trading volume is simply the total number of shares traded including both buy and sell orders. If a stock has appreciated on high volume, it is more likely to be a sustained move compared to an appreciation with low volume. Typically, high volume trading sessions are considered significant occurrences and closely watched by traders.
Price action was mostly bullish yesterday with some communication services stocks recording abnormally high trading volumes. Here's a recap:
Pearson Plc | 767% higher than rolling average
Pearson plc has lost 2.75% over the last 7 days. More of the same from yesterday's session: the British publishing and education company has recovered almost all of its session losses after dipping down to $11.22 yesterday.
Trading volume was 2.69 million shares yesterday — beating the daily average by a mammoth 767%.
Shaw Communications | 345% above rolling average
Yesterday's trading volume was 5.84 million shares (surpassing the daily average by 345%).
3 months ago, the Canadian telecoms provider fell to a low of $24 but has since recovered 22.97%. The stock has been trending positively for about 3 months. Signs of life: 3 days of level trading might be coming to an end with a gain of 0.5% today
Shaw Communications discloses 7.4 cents per share dividend to be paid on Monday, January 30th
Spotify | 522% above rolling average
The music streaming platform closed at $112.72 after it made its largest daily jump of $12.72 (12.72%) since July 2022. Spotify has posted further gains as part of a 29 day trend that has already seen the stock gain $27.64. Yesterday's session pointed in the same direction — after closing yesterday at $112.72, the video entertainment company peaked at $113.3 before giving up early gains and closing at $112.72.
Trading volume peaked at 9.51 million shares yesterday, thereby obliterating the daily average of 1.82 million by 522%.
— Average trading volume refers to a 21-day rolling average.