Anheuser Busch Inbev SA (BUD) stock coverage initiated with “Overweight” in research note to investors by Morgan Stanley

Anheuser Busch Inbev SA (NYSE: BUD) shares rose yesterday on heavier trade volume than normal after more analysts initiated coverage on the stock.

Analysts at Morgan Stanley initiated coverage on Anheuser Busch Inbev SA (NYSE: BUD) stock, rating the company at Overweight. The company currently has a rating of Overweight on the shares. The one-year price target of $138.10 is higher than the opening price of $129.42, causing a fair amount of other analysts to report on the company in recent days. Looking back over the last year, Anheuser Busch Inbev SA stock has a high of $136.08. Price changes targets are not unusual as analysts and brokerage firms will publish periodic updates after initiating coverage,.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.62% finished up 112.58 points, or 0.6%, at 18,281.03 yesterday.

The Nasdaq Composite Index COMP, +0.50% rose 26.36 points, or 0.5%, to end at 5,316.02, and is up 0.1% for the week to date.

The S&P 500 index SPX, +0.43% added 9.24 points, or 0.4%, to close at 2,159.73.

Shares of Anheuser Busch Inbev SA (NYSE: BUD) opened at $129.42 yesterday and traded in a range between, $128.90 and $129.67, and last traded at $129.26, a spike of $0.54 or 0.00 from the previous closing price.

Anheuser Busch Inbev SA (NYSE: BUD) currently has a market cap of 207.82B.

Anheuser Busch Inbev SATrading Volume

1,868,607 shares traded hands yesterday, higher than the norm, out of a total float 791,073,000. Considerable volume aggregation by institutional investors may be on the horizon as the combination of large increases in trading volume and price appreciation can be indicative factors.

While an increase in trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship is defined by 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 investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.

Anheuser Busch Inbev SA 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 winning trades.

Trades for Anheuser Busch Inbev SA (NYSE: BUD) have ranged from $109.47 – 136.08, and the stock now has a 50-day MA of $127.03 and 200-day MA of $126.01. Today’s last price is 0.05% below the 52 week high of $136.08.

Earnings growth is a crucial factor to look at when investing in stocks and investors look for companies that have increased their earnings at least 25% or more for 3 consecutive years.

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