Extended Stay America, Inc. (NYSE: STAY) shares rose in value on Wednesday January 25 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, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened
The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.
The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.
All three main indexes set intraday records shortly after the opening bell.
Analysts at Stifel Nicolaus upgraded shares of Extended Stay America, Inc. (NYSE: STAY) from Hold to Buy today. Stifel Nicolaus currently has a rating of Buy on the stock. The one-year price target of $18.50 is above the opening price of $16.72, that has caused a number of other analysts to comment on the company recently. Looking back over the last 52 weeks, Extended Stay America, Inc. stock has a high of $17.08. Usually, after analysts give an upgrade report on a stock, they will subsequently issue recurring updates, such as a price target change.
Yesterday Extended Stay America, Inc. (NYSE: STAY) shares last traded at $16.44, a spike of $0.28 compared to the previous closing price. Opening at $16.72, they varied from $16.28 and $16.72 throughout the day.
Extended Stay America, Inc. (NYSE: STAY) now has a market cap of 3.26B.
Extended Stay America, Inc. (NYSE: STAY) Average Daily Trading Volume
The stock’s average daily volume is 1,194,730 shares out of a total float 109,245,000 and some 607,085 shares crossed the trading desk yesterday, 80 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
Extended Stay America, Inc. (NYSE: STAY) 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 Extended Stay America, Inc. (NYSE: STAY) have ranged from $10.56 – 17.08, and the stock now has a 50-day MA of $16.17 and 200-day MA of $14.87. Today’s last price is 3.75%% below the 52 week high of $17.08.
Earnings growth is a crucial factor to research when investing in stocks and investors identify companies that have raised their earnings at least 25% or more for a 3 year period.
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