Central Garden & Pet Co. (NASDAQ: CENT) shares rose in value Monday Oct 31 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks closed lower after waffling between slight gains and losses Monday, finishing the month with a loss.
The S&P 500 SPX, -0.01% slipped 0.26 points to close at 2,126.15, with five of the 11 main sectors finishing lower, led the energy sector declining 1.2%.
The Dow Jones Industrial Average DJIA, -0.10% declined 18.77 points, or 0.1%, to close at 18,142.42.
The Dow had been up by as many as 32 points on the session and down by as many as 31.
Meanwhile, the Nasdaq Composite Index COMP, -0.02% finished down 0.97 points at 5,189.13, after having been up 17 points earlier and down by as many as 4.
Analysts at Sidoti upgraded shares of Central Garden & Pet Co. (NASDAQ: CENT) from Neutral to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $27.89. The one-year price target of $29.00 is higher than the opening price of $23.33, causing a fair amount of other analysts to comment on the stock in recent days. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Central Garden & Pet Co. (NASDAQ: CENT) shares last traded at $24.32, which is a jump of $1.02 or 4.38% compared to the previous closing price. Opening at $23.33, they ranged from $22.97 and $24.36 throughout the day.
Central Garden & Pet Co. (NASDAQ: CENT) now has a market cap of 1.24B.
Central Garden & Pet Co.Average Daily Trading Volume
The stock’s average daily volume is 175,625 shares out of a total float 44,306,000 and some 171,671 shares traded hands yesterday, lower than the norm. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to determine substantial volume aggregation or distribution by institutional investors.
As with all possible breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.
Central Garden & Pet Co. 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, Central Garden & Pet Co. (NASDAQ: CENT) now has a 50-day MA of $25.15 and 200-day MA of $22.55. It has traded in a 52-week range between $11.67 – 27.89 and today’s last price is 12.80%% lower than the 52 week high of $27.89.
Earnings growth is an important factor to look at when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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