Costco Wholesale Corporation (NASDAQ: COST) shares rose on Thursday February 2 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, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.
Costco Wholesale Corporation (NASDAQ: COST) had its Hold rating reiterated by equities researchers at Wells Fargo & Company in a research note to investors. The company currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $174.80, above the opening price of $166.84, a difference of 10.37 percent. Costco Wholesale Corporation stock has a 52-week high of $169.59. Stock prices sometimes get a boost to the upside when analysts reiterate coverage.
Shares of Costco Wholesale Corporation (NASDAQ: COST) opened at $166.84 yesterday and traded in a range between, $166.16 and $168.88, and last traded at $168.64, a spike of $6.78 compared to the previous closing price.
Costco Wholesale Corporation (NASDAQ: COST) now has a market cap of 74.07B.
Costco Wholesale Corporation (NASDAQ: COST) Average Daily Trading Volume
The stock’s average daily volume is 2,197,430 shares out of a total float 431,804,000 and some 1,807,722 shares crossed the trading desk yesterday, 114 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are considering.
Costco Wholesale Corporation (NASDAQ: COST) 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 Costco Wholesale Corporation (NASDAQ: COST) have ranged from $138.57 – 169.59, and the stock now has a 50-day MA of $162.23 and 200-day MA of $157.57. Today’s last price is 0.56%% lower than the 52 week high of $169.59.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more for a 3 year period.
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