Pepsico, Inc. (NYSE: PEP) shares fell in early trading yesterday lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded 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.
Shares of Pepsico, Inc. (NYSE: PEP) were downgraded by analysts at Vetr Inc. in a note to their investors today. With a rating of Hold on the stock, Pepsico, Inc. has a 52-week high of $110.94. The one-year price target of $116.74 is higher than the opening price of $103.32, that has caused a number of other analysts to issue statements on the company in recent days. Downgrades occur when analysts feel that the future prospects for the security have diminished from the initial recommendation, usually because of an important and integral change in the company’s operations, future outlook or industry.
Yesterday Pepsico, Inc. (NYSE: PEP) shares last traded at $102.63, which is a drop of $0.83 compared to the previous closing price. Opening at $103.32, they varied from $102.39 and $103.32 throughout the day.
Pepsico, Inc. (NYSE: PEP) currently has a market cap of 147.19B.
Pepsico, Inc. (NYSE: PEP) Average Daily Trading Volume
The stock’s average daily volume is 4,367,950 shares out of a total float 1,431,343,000 and some 493,889 shares traded hands yesterday, 44 percent below normal. 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Pepsico, Inc. (NYSE: PEP) now has a 50-day MA of $103.57 and 200-day MA of $106.07. It has traded in a 52-week range between $93.25 – 110.94 and today’s last price is 7.49%% lower than the 52 week high of $110.94.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.