HOSTESS BRANDS (NASDAQ: TWNK) shares rose on Tuesday February 14 on lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Analysts at CL King initiated coverage on HOSTESS BRANDS (NASDAQ: TWNK) stock, rating the company at Strong-Buy. CL King currently has a rating of Strong-Buy on the stock. The one-year price target of $17.75 is higher than the opening price of $14.91, resulting a number of other analysts to report on the company in recent days. Looking back over the last 52 weeks, HOSTESS BRANDS stock has a high of $15.13. Price changes targets are not uncommon as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Yesterday HOSTESS BRANDS (NASDAQ: TWNK) shares last traded at $14.99, which is a spike of $0.43 from the previous closing price. Opening at $14.91, they ranged from $14.77 and $15.04 throughout the day.
HOSTESS BRANDS (NASDAQ: TWNK) now has a market cap of 173.02M.
HOSTESS BRANDS (NASDAQ: TWNK) Average Daily Trading Volume
153,826 shares crossed the trading desk yesterday, 76 percent below the norm, out of a total float 6,535,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
HOSTESS BRANDS (NASDAQ: TWNK) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, HOSTESS BRANDS (NASDAQ: TWNK) now has a 50-day MA of $13.98 and 200-day MA of $12.11. It has traded in a 52-week range between $9.50 – 15.1300 and today’s last price is 0.93%% lower than the 52 week high of $15.13.
Earnings growth is a crucial factor to consider when buying stocks and investors seek companies that have grown their earnings at least 25% or more over 3 consecutive years.
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