Hormel Foods Corp. (NYSE: HRL) shares rose in value Wednesday Dec 14 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Zacks Investment Research upgraded shares of Hormel Foods Corp. (NYSE: HRL) from Hold to Buy today. Zacks Investment Research currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $39.60, above the opening price of $35.00, a difference of 11.32 percent. Hormel Foods Corp. stock has a 52-week high of $45.72. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Shares of Hormel Foods Corp. (NYSE: HRL) opened at $35.00 on Tuesday trading between $34.88 and $35.14, and last traded at $34.98, which represents a jump of $0.12 or 0.34% compared to the previous closing price.
Hormel Foods Corp. (NYSE: HRL) now has a market cap of 18.50B.
Hormel Foods Corp. (NYSE: HRL) Average Daily Trading Volume
171,421 shares traded hands yesterday, below the average, out of a total float 268,598,000. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify large volume accumulation or circulation by institutional investors.
While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.
Hormel Foods Corp. (NYSE: HRL) 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 Hormel Foods Corp. (NYSE: HRL) have ranged from $33.18 – 45.72, and the stock now has a 50-day MA of $35.75 and 200-day MA of $36.47. Today’s last price is 23.49%% under the 52 week high of $45.72.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over a 3 year period.
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