Dollar General Corp. (NYSE: DG) shares fell on Monday Dec 19 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, the Dow Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Analysts at Vetr Inc. downgraded shares of Dollar General Corp. (NYSE: DG) from Strong-Buy to Buy in a research note to investors today. With a rating of Buy on the stock, the company has a 52-week high of $96.88. The one-year price target of $80.07 is above the opening price of $76.62, causing a fair amount of other analysts to comment on the company in recent days. Downgrades happen when analysts consider that the future prospects for the security have weakened from the original recommendation, usually caused by a considerable and crucial digression in the company’s operations, future vision or industry.
Dollar General Corp. (NYSE: DG) shares last traded at $76.45, which represents a decrease of $0.40 per share or -0.52% compared to the previous closing price. Opening at $76.62, they varied from $76.17 and $76.91 throughout the day.
Dollar General Corp. (NYSE: DG) now has a market cap of 21.12B.
Dollar General Corp. (NYSE: DG) Average Daily Trading Volume
185,203 shares traded hands yesterday, lower than the average, out of a total float 252,284,000. Swing traders often use upticks in trading volume to identify substantial volume aggregation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
However, just a day of significant buy side trading is not enough to assert a trend. So market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Dollar General Corp. (NYSE: DG) 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 investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Dollar General Corp. (NYSE: DG) now has a 50-day MA of $74.88 and 200-day MA of $81.20. It has traded in a 52-week range between $66.50 – 96.88 and today’s last price is 21.09%% lower than the 52 week high of $96.88.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% for a 3 year period.
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