Costco Wholesale Corp. (NASDAQ: COST) shares closed lower on Monday Dec 5 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Credit Suisse Group AG initiated coverage on Costco Wholesale Corp. (NASDAQ: COST) stock, rating the company at Outperform. Credit Suisse Group AG currently has a rating of Outperform on the shares. A number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $169.12, above the opening price of $152.09, a difference of 11.14 percent. Costco Wholesale Corp. stock has a 52-week high of $169.73. Analysts and brokerage firms will subsequently publish periodic updates after beginning or initiating coverage. Changes in price targets are not unheard of.
Shares of Costco Wholesale Corp. (NASDAQ: COST) opened at $152.09 on Tuesday trading between $151.07 and $152.23, and last traded at $151.79, a drop of $0.30 per share or -0.20% from the previous closing price.
Costco Wholesale Corp. (NASDAQ: COST) currently has a market cap of 66.35B.
Costco Wholesale Corp. (NASDAQ: COST) Average Daily Trading Volume
The stock’s average daily volume is 2,499,340 shares out of a total float 429,529,000 and some 185,067 shares crossed the trading desk yesterday, lower than normal. Swing traders often use swings in trading volume to pinpoint heavy volume growth or distribution by institutional investors, so look for trading volume to pick up in the coming days.
As with all possible breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Costco Wholesale Corp. (NASDAQ: COST) 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 Costco Wholesale Corp. (NASDAQ: COST) have ranged from $138.57 – 169.73, and the stock now has a 50-day MA of $149.38 and 200-day MA of $155.57. Today’s last price is 10.57%% lower than the 52 week high of $169.73.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have raised their earnings by at least 25% for a 3 year period.
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