Callaway Golf Company (NYSE: ELY) 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, in early trading today the Dow Jones Industrial Average DJIA, +0.19% rose 40 points, or 0.2%, to 19,929 while the S&P 500 SPX, +0.31% added 5 points to 2,275, a rise of 0.2%. The Nasdaq Composite Index COMP, +0.53% climbed 19 points, or 0.3%, to 5,567.
Callaway Golf Company (NYSE: ELY) had its Buy rating reiterated by equities researchers at Jefferies Group in a research note to investors. With a rating of Buy on the stock, the company has a 52-week high of $12.56. The one-year price target of $14.10 is higher than the opening price of $11.30, that has caused a fair amount of other analysts to comment on the stock in recent days. Stock prices sometimes get a bounce to the upside when analysts reiterate coverage.
Yesterday Callaway Golf Company (NYSE: ELY) shares last traded at $11.37, which represents an increase of $0.19 over the previous closing price. Opening at $11.30, they varied from $11.30 and $11.44 throughout the day.
Callaway Golf Company (NYSE: ELY) now has a market cap of 1.07B.
Callaway Golf Company (NYSE: ELY) Average Daily Trading Volume
64,595 shares traded hands yesterday, 20 percent below the norm, out of a total float 93,211,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re researching.
Callaway Golf Company (NYSE: ELY) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for Callaway Golf Company (NYSE: ELY) have ranged from $8.00 – 12.56, and the stock now has a 50-day MA of $11.52 and 200-day MA of $11.21. Today’s last price is 9.47%% lower than the 52 week high of $12.56.
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 grown their earnings by at least 25% over the past 3 years.
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