Skechers U.S.A., Inc. (SKX) Stock Trending Up After Price Target Increase at Wedbush

Skechers U.S.A., Inc. (NYSE: SKX) shares rose on Wednesday January 25 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.

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.

Skechers U.S.A., Inc. (NYSE: SKX) had its price target boosted by equities researchers at Wedbush from $23.00 to $25.00. With a rating of Neutral on the shares, Skechers U.S.A., Inc. has a 52-week high of $34.27. The one-year price target of $26.56 is above the opening price of $26.08, resulting a number of other analysts to comment on the company in recent days.

Shares of Skechers U.S.A., Inc. (NYSE: SKX) opened at $26.08 yesterday and traded in a range between, $26.04 and $26.40, and last traded at $26.10, which is an increase of $0.20 from the previous closing price.

Skechers U.S.A., Inc. (NYSE: SKX) now has a market cap of 4.12B.

Skechers U.S.A., Inc. (NYSE: SKX) Average Daily Trading Volume

228,044 shares traded hands yesterday, 2 percent below the norm, out of a total float 125,451,000. 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.

These professional investors retain teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re researching.

Skechers U.S.A., Inc. (NYSE: SKX) 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 investors to make those trends work in their favor and increase the number of successful trades.

With that in mind, Skechers U.S.A., Inc. (NYSE: SKX) now has a 50-day MA of $25.43 and 200-day MA of $24.18. It has traded in a 52-week range between $18.81 – 34.270 and today’s last price is 23.86%% lower than the 52 week high of $34.27.

Earnings growth is a crucial factor to research when buying stocks and investors look for companies that have grown their earnings by at least 25% over the past 3 years.

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