McDonald’s Corp. (NYSE: MCD) shares rose early today on lighter trade volume than normal after more analysts initiated coverage on the stock.
Analysts at Telsey Advisory Group initiated coverage on McDonald’s Corp. (NYSE: MCD) stock, starting the company at Outperform. Telsey Advisory Group currently has a rating of Outperform on the stock. The one-year price target of $128.26 is above the opening price of $114.24, resulting a number of other analysts to report on the stock in recent days. Looking back over the last 52 weeks, McDonald’s Corp. stock has a high of $131.96. After initiating coverage,, analysts and brokerage firms will subsequently issue periodic updates. Changes in price targets are not unusual.
Meanwhile, U.S. stock futures on Monday pointed to a higher open, as investors prepared for the start of earnings season
S&P 500 futures ESZ6, +0.44% rose by 9 points, or 0.4%, to 2,155.50, while Dow Jones Industrial Average futures YMZ6, +0.40% gained 64 points, or 0.4%, to 18,221.
Nasdaq-100 futures NQZ6, +0.42% tacked on 17.75 points, or 0.4%, to 4,876.75.Meanwhile, U.S. stock futures on Monday pointed to a higher open, as investors prepared for the start of earnings season
McDonald’s Corp. (NYSE: MCD) shares last traded at $114.60, a spike of $1.15 or 0.01 over the previous closing price. Opening at $114.24, they ranged from $114.16 and $114.85 throughout the day.
McDonald’s Corp. (NYSE: MCD) currently has a market cap of 97.80B.
McDonald’s Corp.Trading Volume
415,674 shares crossed the trading desk yesterday, below the average, out of a total float 852,952,000. Momentum traders often use increases in trading volume to pinpoint large volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.
While increased trading for short periods 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 indicator to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
McDonald’s Corp. 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 following the activity of these professional investors—and the moving averages they influence— traders are able to make make the best trades.
Trades for McDonald’s Corp. (NYSE: MCD) have ranged from $101.60 – 131.96, and the stock now has a 50-day MA of $115.46 and 200-day MA of $121.70. Today’s last price is 0.13% lower than the 52 week high of $131.96.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings by at least 25% for the past 3 years.
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