Noodles & Company (NASDAQ: NDLS) 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.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
Analysts at Zacks Investment Research upgraded shares of Noodles & Company (NASDAQ: NDLS) from Sell to Hold today. With a rating of Hold on the shares, the company has a 52-week high of $13.65. The one-year price target of $5.07 is higher than the opening price of $4.25, resulting a fair amount of other analysts to comment on the stock recently. Share prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday Noodles & Company (NASDAQ: NDLS) shares last traded at $4.20, a decrease of $0.05 from the previous closing price. Opening at $4.25, they varied from $4.15 and $4.30 throughout the day.
Noodles & Company (NASDAQ: NDLS) currently has a market cap of 117.02M.
Noodles & Company (NASDAQ: NDLS) Average Daily Trading Volume
3,342 shares crossed the trading desk yesterday, 21 percent below normal, out of a total float 19,454,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Noodles & Company (NASDAQ: NDLS) 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 Noodles & Company (NASDAQ: NDLS) have ranged from $3.51 – 13.65, and the stock now has a 50-day MA of $4.47 and 200-day MA of $6.10. Today’s last price is 69.23%% under the 52 week high of $13.65.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have grown their earnings by at least 25% for a 3 year period.
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