Costco Wholesale Corp. (NASDAQ: COST) shares fell on Wednesday Nov 30 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, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.
The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.
The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.
Costco Wholesale Corp. (NASDAQ: COST) had its Neutral rating reiterated by equities researchers at Guggenheim in a research note to investors. The company currently has a rating of Neutral on the shares. The one-year price target of $169.26 is above the opening price of $151.13, causing a fair amount of other analysts to comment on the stock recently. Looking back over the last year, Costco Wholesale Corp. stock has a high of $169.73. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Costco Wholesale Corp. (NASDAQ: COST) opened at $151.13 on Tuesday trading between $150.66 and $151.52, and last traded at $151.11, a drop of $0.37 per share or -0.24% compared to the previous closing price.
Costco Wholesale Corp. (NASDAQ: COST) now has a market cap of 66.05B.
Costco Wholesale Corp. (NASDAQ: COST) Average Daily Trading Volume
179,414 shares traded hands yesterday, below the norm, out of a total float 429,529,000. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to determine large volume growth or circulation by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to show 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.
Institutional investors such as these 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 following the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective choices on 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 10.97%% under the 52 week high of $169.73.
Earnings growth is a crucial factor to consider when investing in stocks and investors look for companies that have been successful at growing their earnings at least 25% or more for a 3 year period.
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