Starbucks Corporation (NASDAQ: SBUX) shares rose on Tuesday January 17 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 trade, the Dow Jones Industrial Average was 47 points lower, or 0.24% to 19838, the S&P 500 fell 7 points, or 0.29% to 2267, while the Nasdaq was down 19 points, or 0.35% to 5554.
Analysts at RBC Capital Markets reiterated an Outperform rating on shares of Starbucks Corporation (NASDAQ: SBUX) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. RBC Capital Markets currently has a rating of Outperform on the shares. The one-year price target of $64.46 is higher than the opening price of $57.62, causing a fair amount of other analysts to report on the company in recent days. Looking back over the last year, Starbucks Corporation stock has a high of $61.78. Stock prices sometimes get a boost to the upside when analysts reiterate coverage.
Shares of Starbucks Corporation (NASDAQ: SBUX) opened at $57.62 yesterday trading between $57.41 and $58.08, and last traded at $58.04, which is a spike of $0.19 from the previous closing price.
Starbucks Corporation (NASDAQ: SBUX) now has a market cap of 84.47B.
Starbucks Corporation (NASDAQ: SBUX) Average Daily Trading Volume
1,254,825 shares traded hands yesterday, 102 percent below the norm, out of a total float 1,416,962,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Starbucks Corporation (NASDAQ: SBUX) 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 Starbucks Corporation (NASDAQ: SBUX) have ranged from $50.84 – 61.78, and the stock now has a 50-day MA of $57.38 and 200-day MA of $55.67. Today’s last price is 6.06%% below the 52 week high of $61.78.
Earnings growth is an important factor to consider when buying stocks and investors seek companies that have raised their earnings by at least 25% over a 3 year period.
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