Yum China (NASDAQ: YUMC) shares rose in value on Tuesday January 17 on slower 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 Goldman Sachs Group, Inc. (The) upgraded shares of Yum China (NASDAQ: YUMC) from Neutral to Buy today. Goldman Sachs Group, Inc. (The) currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have commented on the stock recently, and Yum China has earned a consensus one-year price target of $30.86, higher than the opening price of $26.34, a difference of 11.56 percent. Yum China stock has a 52-week high of $30.37. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Shares of Yum China (NASDAQ: YUMC) opened at $26.34 yesterday trading between $26.29 and $26.95, and last traded at $26.70, which is a jump of $0.73 over the previous closing price.
Yum China (NASDAQ: YUMC) now has a market cap of 10.23B.
Yum China (NASDAQ: YUMC) Average Daily Trading Volume
963,892 shares crossed the trading desk yesterday, 64 percent lower than the average, out of a total float 382,938,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much 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.
These instituitional investors retain teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
Yum China (NASDAQ: YUMC) 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.
With that in mind, Yum China (NASDAQ: YUMC) now has a 50-day MA of $26.94 and 200-day MA of $26.66. It has traded in a 52-week range between $23.79 – 30.37 and today’s last price is 12.08%% lower than the 52 week high of $30.37.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for a 3 year period.
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