Mattel Inc. (NASDAQ: MAT) shares rose in value on Monday January 23 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
Analysts at Vetr Inc. upgraded shares of Mattel Inc. (NASDAQ: MAT) from Buy to Strong-Buy today. Vetr Inc. currently has a rating of Strong-Buy on the shares. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and the company has earned a consensus one-year price target of $35.36, above the opening price of $30.09. Mattel Inc. stock has a 52-week high of $34.76. Usually, after analysts give an upgrade report on a stock, they will subsequently issue sporadic revisions, such as a price target change.
Yesterday Mattel Inc. (NASDAQ: MAT) shares last traded at $30.34, which represents an increase of $0.32 over the previous closing price. Opening at $30.09, they fluctuated from $29.69 and $30.36 throughout the day.
Mattel Inc. (NASDAQ: MAT) currently has a market cap of 10.38B.
Mattel Inc. (NASDAQ: MAT) Average Daily Trading Volume
349,683 shares crossed the trading desk yesterday, 117 percent below the norm, out of a total float 341,128,000. 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, conversely, 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 researching thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
Mattel Inc. (NASDAQ: MAT) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for Mattel Inc. (NASDAQ: MAT) have ranged from $26.11 – 34.7600, and the stock now has a 50-day MA of $29.28 and 200-day MA of $31.42. Today’s last price is 12.70%% below the 52 week high of $34.76.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more for the past 3 years.
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