Texas Roadhouse, Inc. (NASDAQ: TXRH) shares rose in value on Tuesday January 17 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 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 Morgan Stanley upgraded shares of Texas Roadhouse, Inc. (NASDAQ: TXRH) from Underweight to Equal Weight today. With a rating of Equal Weight on the stock, Texas Roadhouse, Inc. has a 52-week high of $50.51. The one-year price target of $45.29 is lower than the opening price of $47.21, causing a number of other analysts to report on the stock recently. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Yesterday Texas Roadhouse, Inc. (NASDAQ: TXRH) shares last traded at $47.64, which represents a jump of $0.68 over the previous closing price. Opening at $47.21, they ranged from $46.68 and $47.81 throughout the day.
Texas Roadhouse, Inc. (NASDAQ: TXRH) currently has a market cap of 3.36B.
Texas Roadhouse, Inc. (NASDAQ: TXRH) Average Daily Trading Volume
159,558 shares crossed the trading desk yesterday, 27 percent below the norm, out of a total float 64,470,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
Texas Roadhouse, Inc. (NASDAQ: TXRH) 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 investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Texas Roadhouse, Inc. (NASDAQ: TXRH) now has a 50-day MA of $48.28 and 200-day MA of $44.51. It has traded in a 52-week range between $34.20 – 50.51 and today’s last price is 5.68%% lower than the 52 week high of $50.51.
Earnings growth is an important factor to consider when investing in stocks and investors identify companies that have increased their earnings by at least 25% over the past 3 years.
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