Monster Beverage Corporation (NASDAQ: MNST) shares fell in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
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%.
Monster Beverage Corporation (NASDAQ: MNST) had its Hold rating reiterated by equities researchers at Susquehanna in a research note to investors. The company currently has a rating of Hold on the shares. A number of other analysts have commented on the company in recent days, and Monster Beverage Corporation has secured a consensus one-year price target of $54.29, above the opening price of $45.46. Monster Beverage Corporation stock has a 52-week high of $55.50. Share prices sometimes get a bounce to the upside when analysts reiterate coverage.
Shares of Monster Beverage Corporation (NASDAQ: MNST) opened at $45.46 yesterday and traded in a range between, $44.73 and $45.57, and last traded at $44.80, a decrease of $0.82 compared to the previous closing price.
Monster Beverage Corporation (NASDAQ: MNST) now has a market cap of 25.58B.
Monster Beverage Corporation (NASDAQ: MNST) Average Daily Trading Volume
152,100 shares traded hands yesterday, 72 percent lower than the norm, out of a total float 426,883,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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.
These professional investors have substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you’re considering.
Monster Beverage Corporation (NASDAQ: MNST) 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.
With that in mind, Monster Beverage Corporation (NASDAQ: MNST) now has a 50-day MA of $44.64 and 200-day MA of $119.54. It has traded in a 52-week range between $37.69 – 55.50 and today’s last price is 19.28%% lower than the 52 week high of $55.50.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings by at least 25% for the past 3 years.
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