Avis Budget Group, Inc. (NASDAQ: CAR) shares fell back in value Wednesday Jan 4 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, U.S. stocks opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.
The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.
Analysts at Zacks Investment Research upgraded shares of Avis Budget Group, Inc. (NASDAQ: CAR) from Hold to Strong-Buy today. With a rating of Strong-Buy on the shares, the company has a 52-week high of $41.53. A number of other analysts have issued reports on the stock in recent days, and the company has earned a consensus one-year price target of $43.75, higher than the opening price of $37.55. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Shares of Avis Budget Group, Inc. (NASDAQ: CAR) opened at $37.55 on Tuesday trading between $36.74 and $37.93, and last traded at $37.06, which represents a decrease of $0.41 per share or -0.01 compared to the previous closing price.
Avis Budget Group, Inc. (NASDAQ: CAR) currently has a market cap of 3.26B.
Avis Budget Group, Inc. (NASDAQ: CAR) Average Daily Trading Volume
185,058 shares traded hands yesterday, lower than the norm, out of a total float 69,587,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
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 teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.
Avis Budget Group, Inc. (NASDAQ: CAR) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for Avis Budget Group, Inc. (NASDAQ: CAR) have ranged from $21.73 – 41.530, and the stock now has a 50-day MA of $38.60 and 200-day MA of $35.95. Today’s last price is 0.11% under the 52 week high of $41.53.
Earnings growth is an important factor to look at when buying stocks and investors watch for companies that have grown their earnings at least 25% or more over the past 3 years.
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