Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) shares were down in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
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.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) had its price target increased by equities researchers at Maxim Group from $73.00 to $70.00. With a rating of Buy on the stock, Red Robin Gourmet Burgers, Inc. has a 52-week high of $68.97. The one-year price target of $59.71 is above the opening price of $50.50, that has caused a number of other analysts to issue statements on the company recently.
Shares of Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) opened at $50.50 yesterday trading between $49.65 and $50.85, and last traded at $50.05, a decrease of $1.20 compared to the previous closing price.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) now has a market cap of 643.51M.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) Average Daily Trading Volume
The stock’s average daily volume is 220,224 shares out of a total float 12,715,000 and some 46,492 shares traded hands yesterday, 121 percent below the average. 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) 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 investors to make those trends work in their favor and increase the number of winning trades.
Trades for Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) have ranged from $40.85 – 68.970, and the stock now has a 50-day MA of $54.02 and 200-day MA of $49.59. Today’s last price is 27.43%% lower than the 52 week high of $68.97.
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% over a 3 year period.
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