Pepsico, Inc. (NYSE: PEP) shares fell in early trading today on lower trade volume than normal after more analysts initiated coverage on the stock.
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 initiated coverage on Pepsico, Inc. (NYSE: PEP) stock, starting the company at Equal Weight. With a rating of Equal Weight on the stock, the company has a 52-week high of $110.94. The one-year price target of $116.74 is higher than the opening price of $104.16, causing a fair amount of other analysts to comment on the company recently. After beginning or initiating coverage, analysts and brokerage firms will subsequently issue periodic updates. Changes in price targets are not unusual.
Yesterday Pepsico, Inc. (NYSE: PEP) shares last traded at $103.63, which represents a drop of $0.93 compared to the previous closing price. Opening at $104.16, they varied from $103.57 and $104.25 throughout the day.
Pepsico, Inc. (NYSE: PEP) now has a market cap of 148.62B.
Pepsico, Inc. (NYSE: PEP) Average Daily Trading Volume
607,294 shares traded hands yesterday, 43 percent lower than the average, out of a total float 1,431,343,000. lower than normal. Look for trading volume to pick up in the coming days as investors 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.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you are considering.
Pepsico, Inc. (NYSE: PEP) 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 Pepsico, Inc. (NYSE: PEP) have ranged from $93.25 – 110.94, and the stock now has a 50-day MA of $103.50 and 200-day MA of $106.04. Today’s last price is 6.59%% below the 52 week high of $110.94.
Earnings growth is a crucial factor to consider when buying stocks and investors look for companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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