Beacon Roofing Supply Inc. (NASDAQ: BECN) shares rose on Wednesday Nov 23 with 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, in early trading, the Dow Jones Industrial Average DJIA, -0.03% fell 3.5 points to 19,019, essentially unchanged on the day. The S&P 500 SPX, -0.26% fell 7 points, or 0.3%, to 2,196, while the Nasdaq Composite Index COMP, -0.48% shed 34 points to 5,353, a loss of 0.6%.
Jefferies Group analysts reiterated its Hold rating on Beacon Roofing Supply Inc. (NASDAQ: BECN) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Hold on the shares, the company has a 52-week high of $48.96. The one-year price target of $50.30 is above the opening price of $45.37, causing a number of other analysts to issue statements on the company in recent days. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of Beacon Roofing Supply Inc. (NASDAQ: BECN) opened at $45.37 on Tuesday trading between $45.37 and $46.04, and last traded at $45.76, which is a spike of $0.40 or 0.88% compared to the previous closing price.
Beacon Roofing Supply Inc. (NASDAQ: BECN) currently has a market cap of 2.74B.
Beacon Roofing Supply Inc. (NASDAQ: BECN) Average Daily Trading Volume
The stock’s average daily volume is 571,277 shares out of a total float 59,629,000 and some 55,842 shares crossed the trading desk yesterday, below the norm. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or dissemination by institutional investors.
However, just a day of high volume buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
Beacon Roofing Supply Inc. (NASDAQ: BECN) 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 useful choices on trades.
With that in mind, Beacon Roofing Supply Inc. (NASDAQ: BECN) now has a 50-day MA of $43.30 and 200-day MA of $44.21. It has traded in a 52-week range between $32.24 – 48.96 and today’s last price is 6.54%% lower than the 52 week high of $48.96.
Earnings growth is an important factor to look at when investing in stocks and investors identify companies that have grown their earnings by at least 25% over the past 3 years.
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