Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) 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%.
Jefferies Group analysts reiterated its Hold rating on Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Hold on the shares, the company has a 52-week high of $68.97. A number of other analysts have commented on the stock in recent days, and the company has earned a consensus one-year price target of $59.71, higher than the opening price of $48.85, a difference of 12.50 percent. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) opened at $48.85 yesterday trading between $47.60 and $48.85, and last traded at $47.75, which represents a dip of $1.10 from the previous closing price.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) currently has a market cap of 613.92M.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) Average Daily Trading Volume
20,676 shares crossed the trading desk yesterday, 12 percent below the norm, out of a total float 12,715,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks 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 just 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 researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) 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, Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) now has a 50-day MA of $54.02 and 200-day MA of $49.59. It has traded in a 52-week range between $40.85 – 68.97 and today’s last price is 30.77%% lower than the 52 week high of $68.97.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have grown their earnings at least 25% or more for the past 3 years.
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