Royal Caribbean Cruises Ltd. (NYSE: RCL) 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.
Meanwhile in early trading, the Dow Jones Industrial Average DJIA, +0.31% rose 24 points, or 0.1%, to 19,883, while the S&P 500 index ESH7, +0.13% dipped less than 1 point to 2,268. The Nasdaq Composite COMP, +0.02% which reached its fourth-straight record close on Tuesday, rose 1 point to 5,553.
Analysts at Vetr Inc. downgraded shares of Royal Caribbean Cruises Ltd. (NYSE: RCL) from Strong-Buy to Buy in a research note to investors today. Vetr Inc. currently has a rating of Buy on the shares. The one-year price target of $92.42 is higher than the opening price of $85.90, resulting a number of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Royal Caribbean Cruises Ltd. stock has a high of $94.56. considerable and major changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the original recommendation.
Shares of Royal Caribbean Cruises Ltd. (NYSE: RCL) opened at $85.90 yesterday and traded in a range between, $85.03 and $85.95, and last traded at $85.64, which is a dip of $0.29 over the previous closing price.
Royal Caribbean Cruises Ltd. (NYSE: RCL) now has a market cap of 18.38B.
Royal Caribbean Cruises Ltd. (NYSE: RCL) Average Daily Trading Volume
The stock’s average daily volume is 1,927,490 shares out of a total float 175,841,000 and some 132,895 shares crossed the trading desk yesterday, 55 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
Royal Caribbean Cruises Ltd. (NYSE: RCL) 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 successful trades.
Trades for Royal Caribbean Cruises Ltd. (NYSE: RCL) have ranged from $64.21 – 94.56, and the stock now has a 50-day MA of $83.57 and 200-day MA of $74.75. Today’s last price is 9.43%% under the 52 week high of $94.56.
Earnings growth is a critical factor to consider when buying stocks and investors look for companies that have increased their earnings by at least 25% over the past 3 years.
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