Ferrari (RACE) Stock Trading Flat After Price Target Increase at Morgan Stanley

Ferrari (NASDAQ: RACE) shares traded mostly flat on Wednesday February 8 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.

Meanwhile U.S. stocks traded modestly lower on Wednesday, as losses in energy shares following a drop in oil prices and a slide in financials weighed on the main indexes.

The S&P 500 index SPX, -0.17% declined 6 points, or 0.3%, to 2,286, with six of the main sectors trading lower. Energy and financials were leading the losses, down more than 1%.

The Dow Jones Industrial Average DJIA, -0.26% was down 65 points, or 0.3%, to 20,021, a day after the blue-chip index set an intraday high at 10,155.35. The Nasdaq Composite COMP, -0.13% retreated from an all-time high set on Tuesday, falling 23 points, or 0.4%, to 5,650.

Ferrari (NASDAQ: RACE) had its price target boosted by equities researchers at Morgan Stanley from $0.00 to $72.00. With a rating of on the shares, the company has a 52-week high of $65.81. The one-year price target of $60.38 is lower than the opening price of $64.21, that has caused a number of other analysts to issue statements on the company recently.

Shares of Ferrari (NASDAQ: RACE) opened at $64.21 yesterday and traded in a range between, $64.12 and $64.67, and last traded at $64.50.

Ferrari (NASDAQ: RACE) now has a market cap of 12.19B.

Ferrari (NASDAQ: RACE) Average Daily Trading Volume

The stock’s average daily volume is 465,719 shares out of a total float 123,410,000 and some 82,636 shares crossed the trading desk yesterday, 103 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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.

These instituitional investors retain substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Ferrari (NASDAQ: RACE) 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 Ferrari (NASDAQ: RACE) have ranged from $31.66 – 65.81, and the stock now has a 50-day MA of $60.38 and 200-day MA of $53.42. Today’s last price is 1.99%% under the 52 week high of $65.81.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings by at least 25% over the past 3 years.

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