McDonald’s Corporation (NYSE: MCD) shares rose 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 opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
McDonald’s Corporation (NYSE: MCD) had its Outperform rating reiterated by equities researchers at Robert W. Baird in a research note to investors. Robert W. Baird currently has a rating of Outperform on the shares. The one-year price target of $128.08 is higher than the opening price of $120.30, causing a number of other analysts to issue statements on the stock in recent days. Looking back over the last year, McDonald’s Corporation stock has a high of $131.96. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of McDonald’s Corporation (NYSE: MCD) opened at $120.30 yesterday trading between $120.20 and $121.30, and last traded at $121.13, which is an increase of $0.25 from the previous closing price.
McDonald’s Corporation (NYSE: MCD) now has a market cap of 100.59B.
McDonald’s Corporation (NYSE: MCD) Average Daily Trading Volume
234,258 shares traded hands yesterday, 66 percent below the average, out of a total float 830,069,000. lower than normal. Look for trading volume to pick up in the coming days as momentum 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, conversely, 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
McDonald’s Corporation (NYSE: MCD) 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 McDonald’s Corporation (NYSE: MCD) have ranged from $110.33 – 131.96, and the stock now has a 50-day MA of $121.21 and 200-day MA of $118.02. Today’s last price is 8.21%% lower than the 52 week high of $131.96.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more over the past 3 years.
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