Monro Muffler Brake, Inc. (NASDAQ: MNRO) shares rose in value on Tuesday January 31 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, 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.
Analysts at Gabelli upgraded shares of Monro Muffler Brake, Inc. (NASDAQ: MNRO) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $73.86. The one-year price target of $74.02 is higher than the opening price of $60.45, resulting a number of other analysts to comment on the stock in recent days. Usually, after analysts publish an upgrade report on a stock, they will subsequently issue other updates, such as a price target change.
Shares of Monro Muffler Brake, Inc. (NASDAQ: MNRO) opened at $60.45 yesterday and traded in a range between, $59.80 and $61.10, and last traded at $60.15, which is a jump of $0.70 over the previous closing price.
Monro Muffler Brake, Inc. (NASDAQ: MNRO) now has a market cap of 1.94B.
Monro Muffler Brake, Inc. (NASDAQ: MNRO) Average Daily Trading Volume
The stock’s average daily volume is 318,227 shares out of a total float 31,102,000 and some 50,351 shares traded hands yesterday, 44 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
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 research thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.
Monro Muffler Brake, Inc. (NASDAQ: MNRO) 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.
Trades for Monro Muffler Brake, Inc. (NASDAQ: MNRO) have ranged from $52.05 – 73.86, and the stock now has a 50-day MA of $57.95 and 200-day MA of $58.58. Today’s last price is 18.56%% under the 52 week high of $73.86.
Earnings growth is a crucial factor to consider when buying stocks and investors watch for companies that have raised their earnings by at least 25% over 3 consecutive years.
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