Calavo Growers Inc. (NASDAQ: CVGW) shares rose in value Thursday Dec 15 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at DA Davidson upgraded shares of Calavo Growers Inc. (NASDAQ: CVGW) from Neutral to Buy today. With a rating of Buy on the shares, Calavo Growers Inc. has a 52-week high of $71.48. A number of other analysts have spoken on the stock in recent days, and Calavo Growers Inc. has earned a consensus one-year price target of $71.17, above the opening price of $59.25. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Calavo Growers Inc. (NASDAQ: CVGW) shares last traded at $58.30, a spike of $0.95 or 1.66% over the previous closing price. Opening at $59.25, they ranged from $58.25 and $59.25 throughout the day.
Calavo Growers Inc. (NASDAQ: CVGW) now has a market cap of 1.02B.
Calavo Growers Inc. (NASDAQ: CVGW) Average Daily Trading Volume
26,055 shares crossed the trading desk yesterday, below normal, out of a total float 15,411,000. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to pinpoint large volume growth or dissemination 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 series of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Calavo Growers Inc. (NASDAQ: CVGW) 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.
Traders are able to make make smarter trades when they follow the activity of professional investors.
Trades for Calavo Growers Inc. (NASDAQ: CVGW) have ranged from $46.56 – 71.48, and the stock now has a 50-day MA of $59.33 and 200-day MA of $63.18. Today’s last price is 18.44%% under the 52 week high of $71.48.
Earnings growth is an important factor to consider when investing in stocks and investors seek companies that have increased their earnings at least 25% or more over the past 3 years.
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