Famous Dave’s of America Inc. (NASDAQ: DAVE) shares traded mostly flat on Thursday Nov 17 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, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
Shares of Famous Dave’s of America Inc. (NASDAQ: DAVE) were downgraded by analysts at Zacks Investment Research in a note to their investors today. Zacks Investment Research currently has a rating of Strong Sell on the stock. The one-year price target of $6.00 is higher than the opening price of $4.90, resulting a fair amount of other analysts to report on the stock recently. Looking back over the last year, Famous Dave’s of America Inc. stock has a high of $9.04. Important and integral changes in the company’s procedures, future vision or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the original recommendation.
Famous Dave’s of America Inc. (NASDAQ: DAVE) shares last traded at $4.90. Opening at $4.90, they ranged from $4.90 and $4.90 throughout the day.
Famous Dave’s of America Inc. (NASDAQ: DAVE) now has a market cap of 34.09B.
Famous Dave’s of America Inc. (NASDAQ: DAVE) Average Daily Trading Volume
The stock’s average daily volume is 17,488 shares out of a total float 3,360,000 and some 532 shares traded hands yesterday, below the average. Momentum traders often use upticks in trading volume to determine substantial volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, one day of heavy buy side trading is not enough to assert a trend. So market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship commonly refers to 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. So watching their interests is a good way to ensure you are buying the right stocks.
Famous Dave’s of America Inc. (NASDAQ: DAVE) 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 winning trades.
Trades for Famous Dave’s of America Inc. (NASDAQ: DAVE) have ranged from $4.75 – 9.04, and the stock now has a 50-day MA of $5.16 and 200-day MA of $5.41. Today’s last price is 45.80%% lower than the 52 week high of $9.04.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have increased their earnings by at least 25% for the past 3 years.
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.