Clorox Company (The) (NYSE: CLX) shares fell back in value in early trading today on slower 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 edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Barclays PLC upgraded shares of Clorox Company (The) (NYSE: CLX) from Underweight to Equal Weight today. The company currently has a rating of Equal Weight on the stock. The one-year price target of $121.67 is lower than the opening price of $122.77, resulting a number of other analysts to report on the stock in recent days. Looking back over the last 52 weeks, Clorox Company (The) stock has a high of $140.47. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday Clorox Company (The) (NYSE: CLX) shares last traded at $121.48, which represents a dip of $1.04 compared to the previous closing price. Opening at $122.77, they fluctuated from $121.48 and $122.96 throughout the day.
Clorox Company (The) (NYSE: CLX) now has a market cap of 15.64B.
Clorox Company (The) (NYSE: CLX) Average Daily Trading Volume
The stock’s average daily volume is 1,040,850 shares out of a total float 128,551,000 and some 89,595 shares traded hands yesterday, 51 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.
Clorox Company (The) (NYSE: CLX) 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 decisions on trades.
Trades for Clorox Company (The) (NYSE: CLX) have ranged from $111.24 – 140.4700, and the stock now has a 50-day MA of $117.84 and 200-day MA of $125.06. Today’s last price is 13.52%% below the 52 week high of $140.47.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.