America’s Car-Mart Inc. (NASDAQ: CRMT) shares rose in value in early trade Wednesday with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Bank of America Corp. upgraded shares of America’s Car-Mart Inc. (NASDAQ: CRMT) from Underperform to Buy today. Bank of America Corp. currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $31.50, a decrease compared to the opening price of $38.75. America’s Car-Mart Inc. stock has a 52-week high of $43.07. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
U.S. stocks mostly climbed on Wednesday as crude-oil prices traded above $51 a barrel.
The Dow Jones Industrial Average DJIA, +0.18% gained 33 points, or 0.2% at 18,195, the S&P 500 index SPX, +0.07% advanced 2 points, or less than 0.1%, at 2,141, while the Nasdaq Composite Index COMP, -0.08% traded little-changed at 5,240.
U.S. stocks closed higher Tuesday as investors welcomed stronger-than-expected quarterly results from a host of companies
The S&P 500 index SPX, +0.62% finished up 13.10 points, or 0.6%, at 2,139.60, with all 11 main sectors trading higher.
The Dow Jones Industrial Average DJIA, +0.42% rose 75.54 points, or 0.4%, to close at 18,161.94.
Meanwhile, the Nasdaq Composite Index COMP, +0.85% added 44.01 points, or 0.9%, to close at 5,243.84.
America’s Car-Mart Inc. (NASDAQ: CRMT) shares last traded at $40.90, a jump of $3.60 or 9.65% over the previous closing price. Opening at $38.75, they varied from $38.75 and $41.55 throughout the day.
America’s Car-Mart Inc. (NASDAQ: CRMT) now has a market cap of 320.49M.
America’s Car-Mart Inc.Trading Volume
111,577 shares traded hands yesterday, higher than the norm, out of a total float 7,474,000. Significant expansions in trading volume and price appreciation together could indicate considerable volume accumulation by institutional investors.
While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
America’s Car-Mart Inc. 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.
Trades for America’s Car-Mart Inc. (NASDAQ: CRMT) have ranged from $19.49 – 43.07, and the stock now has a 50-day MA of $37.73 and 200-day MA of $30.68. Today’s last price is 5.04%% lower than the 52 week high of $43.07.
Earnings growth is a critical factor to consider when buying stocks and investors watch for companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.
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