Primo Water Corporation (NASDAQ: PRMW) shares rose in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
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.
Analysts at Zacks Investment Research upgraded shares of Primo Water Corporation (NASDAQ: PRMW) from Hold to Buy today. The company currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have commented on the stock recently, and Primo Water Corporation has earned a consensus one-year price target of $16.50, above the opening price of $11.95, a difference of 13.67 percent. Primo Water Corporation stock has a 52-week high of $14.99. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of Primo Water Corporation (NASDAQ: PRMW) opened at $11.95 yesterday and traded in a range between, $11.95 and $12.21, and last traded at $12.07, a spike of $0.16 from the previous closing price.
Primo Water Corporation (NASDAQ: PRMW) now has a market cap of 314.41M.
Primo Water Corporation (NASDAQ: PRMW) Average Daily Trading Volume
The stock’s average daily volume is 155,973 shares out of a total float 20,398,000 and some 13,502 shares crossed the trading desk yesterday, 95 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Primo Water Corporation (NASDAQ: PRMW) 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.
With that in mind, Primo Water Corporation (NASDAQ: PRMW) now has a 50-day MA of $12.73 and 200-day MA of $12.23. It has traded in a 52-week range between $8.00 – 14.990 and today’s last price is 19.46%% lower than the 52 week high of $14.99.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings at least 25% or more over the past 3 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.