Starbucks Corporation (NASDAQ: SBUX) shares rose in value in early trading today on 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 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 Vetr Inc. upgraded shares of Starbucks Corporation (NASDAQ: SBUX) from Buy to Strong-Buy today. The company currently has a rating of Strong-Buy on the stock. The one-year price target of $64.46 is higher than the opening price of $57.26, causing a fair amount of other analysts to report on the stock recently. Looking back over the last year, Starbucks Corporation stock has a high of $61.78. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Starbucks Corporation (NASDAQ: SBUX) opened at $57.26 yesterday trading between $57.25 and $58.09, and last traded at $58.00, which represents a spike of $0.87 compared to the previous closing price.
Starbucks Corporation (NASDAQ: SBUX) currently has a market cap of 84.41B.
Starbucks Corporation (NASDAQ: SBUX) Average Daily Trading Volume
The stock’s average daily volume is 8,857,110 shares out of a total float 1,416,962,000 and some 1,824,831 shares crossed the trading desk yesterday, 3 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases 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 instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re researching.
Starbucks Corporation (NASDAQ: SBUX) 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, Starbucks Corporation (NASDAQ: SBUX) now has a 50-day MA of $57.38 and 200-day MA of $55.67. It has traded in a 52-week range between $50.84 – 61.78 and today’s last price is 6.13%% lower than the 52 week high of $61.78.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% for a 3 year period.
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