Diageo PLC (NYSE: DEO) shares rose on Tuesday Nov 29 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.
U.S. stocks on Tuesday morning traded near break-even levels, with the main benchmarks switching in and out of negative territory
The Dow Jones Industrial Average DJIA, -0.09% was flat at 19,102. Meanwhile, the Nasdaq Composite COMP, +0.00% traded 18 points, or 0.1%, at 5,362.
The S&P 500 index SPX, -0.04% was off by 0.1%, or 2 points, at 2,199, with five of the 11 main sectors trading lower.
Analysts at Jefferies Group reiterated a Buy rating on shares of Diageo PLC (NYSE: DEO) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Buy on the stock, Diageo PLC has a 52-week high of $117.84. The one-year price target of $124.86 is higher than the opening price of $101.92, that has caused a fair amount of other analysts to comment on the company in recent days. Typically, after analysts publish a “reiterated rating” report on a stock, they will subsequently issue other updates, such as a price target change.
Shares of Diageo PLC (NYSE: DEO) opened at $101.92 on Tuesday trading between $101.77 and $102.08, and last traded at $101.82, a spike of $0.02 or 0.02% over the previous closing price.
Diageo PLC (NYSE: DEO) currently has a market cap of 63.90B.
Diageo PLC (NYSE: DEO) Average Daily Trading Volume
The stock’s average daily volume is 696,172 shares out of a total float 608,497,000 and some 85,149 shares traded hands yesterday, below the norm. 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% above normal on the breakout to indicate 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 research thousands of stocks, so it is good validation to see them buying a stock you are researching.
Diageo PLC (NYSE: DEO) 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 can make more impactful choices on trades when they follow the trading habits of professional investors.
With that in mind, Diageo PLC (NYSE: DEO) now has a 50-day MA of $105.37 and 200-day MA of $110.35. It has traded in a 52-week range between $99.46 – 117.84 and today’s last price is 13.59%% lower than the 52 week high of $117.84.
Earnings growth is a crucial factor to research when investing in stocks and investors watch for companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.