Deckers Outdoor Corporation (NYSE: DECK) shares rose in value on Wednesday January 18 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 today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.
Analysts at Buckingham Research upgraded shares of Deckers Outdoor Corporation (NYSE: DECK) from Neutral to Buy today. Buckingham Research currently has a rating of Buy on the stock. The one-year price target of $60.63 is less than the opening price of $61.33, resulting a number of other analysts to issue statements on the company recently. Looking back over the last year, Deckers Outdoor Corporation stock has a high of $69.94. Typically, after analysts issue an upgrade report on a stock, they will subsequently issue periodic updates, often followed by a price target change.
Yesterday Deckers Outdoor Corporation (NYSE: DECK) shares last traded at $60.53, a spike of $1.54 over the previous closing price. Opening at $61.33, they fluctuated from $59.45 and $61.33 throughout the day.
Deckers Outdoor Corporation (NYSE: DECK) currently has a market cap of 1.94B.
Deckers Outdoor Corporation (NYSE: DECK) Average Daily Trading Volume
523,268 shares traded hands yesterday, 26 percent lower than the norm, out of a total float 30,155,000. 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
Deckers Outdoor Corporation (NYSE: DECK) 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, Deckers Outdoor Corporation (NYSE: DECK) now has a 50-day MA of $58.04 and 200-day MA of $60.18. It has traded in a 52-week range between $40.99 – 69.940 and today’s last price is 13.46%% lower than the 52 week high of $69.94.
Earnings growth is a critical factor to look at when investing in stocks and investors seek companies that have increased their earnings at least 25% or more for the past 3 years.
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