United Natural Foods, Inc. (NASDAQ: UNFI) shares closed lower on Tuesday January 31 on lighter trade volume than normal after more analysts initiated coverage on the stock.
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 Goldman Sachs Group, Inc. (The) initiated coverage on United Natural Foods, Inc. (NASDAQ: UNFI) stock, starting the company at Neutral. Goldman Sachs Group, Inc. (The) currently has a rating of Neutral on the shares. A number of other analysts have issued reports on the company in recent days, and United Natural Foods, Inc. has secured a consensus one-year price target of $43.00, lower than the opening price of $46.21, a difference of 9.43 percent. United Natural Foods, Inc. stock has a 52-week high of $52.18. Price changes targets are not unusual as analysts and brokerage firms will publish periodic updates after initiating coverage,.
Yesterday United Natural Foods, Inc. (NASDAQ: UNFI) shares last traded at $45.61, which represents a decrease of $0.38 from the previous closing price. Opening at $46.21, they ranged from $45.50 and $46.21 throughout the day.
United Natural Foods, Inc. (NASDAQ: UNFI) now has a market cap of 2.31B.
United Natural Foods, Inc. (NASDAQ: UNFI) Average Daily Trading Volume
43,944 shares crossed the trading desk yesterday, 33 percent below the average, out of a total float 50,179,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders 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 investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
United Natural Foods, Inc. (NASDAQ: UNFI) 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 winning trades.
With that in mind, United Natural Foods, Inc. (NASDAQ: UNFI) now has a 50-day MA of $47.45 and 200-day MA of $45.50. It has traded in a 52-week range between $29.75 – 52.18 and today’s last price is 12.59%% lower than the 52 week high of $52.18.
Earnings growth is a critical factor to look at when investing in stocks and investors seek companies that have grown their earnings by at least 25% for the past 3 years.
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