Darden Restaurants, Inc. (NYSE: DRI) shares fell on Friday January 13 on 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 DJIA, -0.03% slipped 5.27 points to close 19,885.73, moving in a roughly 100-point range all session. For the week, the blue-chip index is off 0.4%.
U.S. financial markets will be closed Monday for Martin Luther King Jr. Day.
The S&P 500 index SPX, +0.18% added 4.20 points, or 0.2%, to end at 2,274.64 for a weekly loss of 0.1%, and the Nasdaq Composite Index COMP, +0.48% climbed 26.63 points, or 0.5%, to finish at 5,574.12, its sixth all-time closing high in seven trading sessions.
Darden Restaurants, Inc. (NYSE: DRI) had its Buy rating reiterated by equities researchers at Canaccord Genuity in a research note to investors. The company currently has a rating of Buy on the shares. The one-year price target of $76.17 is higher than the opening price of $73.68, that has caused a number of other analysts to issue statements on the stock in recent days. Looking back over the last year, Darden Restaurants, Inc. stock has a high of $79.43. Share prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of Darden Restaurants, Inc. (NYSE: DRI) opened at $73.68 yesterday trading between $72.90 and $73.83, and last traded at $73.37, which represents a dip of $0.44 compared to the previous closing price.
Darden Restaurants, Inc. (NYSE: DRI) currently has a market cap of 9.11B.
Darden Restaurants, Inc. (NYSE: DRI) Average Daily Trading Volume
1,410,282 shares traded hands yesterday, 87 percent below normal, out of a total float 123,883,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than 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.
Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Darden Restaurants, Inc. (NYSE: DRI) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Darden Restaurants, Inc. (NYSE: DRI) now has a 50-day MA of $74.74 and 200-day MA of $66.14. It has traded in a 52-week range between $55.77 – 79.43 and today’s last price is 7.63%% lower than the 52 week high of $79.43.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for 3 consecutive years.
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