Lamb Weston Holdings Inc. (NYSE: LW) shares rose on Tuesday January 31 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.60% fell 140 points, or 0.7%, to 19,833, with 26 of the 30 blue-chip companies trading lower. Nike, Inc. NKE, -1.10% down 2.4% and Intel Corp. INTC, -1.70% off 1%, were leading losses.
The S&P 500 SPX, -0.33% was off by 10 points, or 0.5%, to 2,270 with seven of the 11 main sectors trading lower. Industrials, consumer-discretionary, and technology shares were the worst performers, while real estate and utilities stocks attracted buyers.
The health-care sector, which was down in early trade, rebounded after President Trump called for scaling back drugmaker’s regulation, lowering taxes and prices of medicines.
The Nasdaq Composite COMP, -0.25% declined 31 points, or 0.6%, to 5,581.
Lamb Weston Holdings Inc. (NYSE: LW) had its Top Pick rating reiterated by equities researchers at Jefferies Group LLC in a research note to investors. Jefferies Group LLC currently has a rating of Top Pick on the shares. The one-year price target of $41.00 is above the opening price of $36.68, resulting a number of other analysts to issue statements on the stock recently. Looking back over the last 52 weeks, Lamb Weston Holdings Inc. stock has a high of $38.96. Share prices often move to the upside on recommendations and new price targets of professional analysts.
Yesterday Lamb Weston Holdings Inc. (NYSE: LW) shares last traded at $37.26, an increase of $0.48 over the previous closing price. Opening at $36.68, they fluctuated from $36.68 and $37.35 throughout the day.
Lamb Weston Holdings Inc. (NYSE: LW) now has a market cap of 5.44B.
Lamb Weston Holdings Inc. (NYSE: LW) Average Daily Trading Volume
The stock’s average daily volume is 2,060,500 shares out of a total float 146,003,000 and some 96,295 shares traded hands yesterday, 109 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases 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 have substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
Lamb Weston Holdings Inc. (NYSE: LW) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Lamb Weston Holdings Inc. (NYSE: LW) now has a 50-day MA of $36.57 and 200-day MA of $35.36. It has traded in a 52-week range between $29.62 – 38.96 and today’s last price is 4.36%% lower than the 52 week high of $38.96.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more over a 3 year period.
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