Analysts at Vetr Inc. downgraded shares of McDonald’s Corp. (NYSE: MCD) from Buy to Hold in a research note to investors today. With a rating of Hold on the stock, the company has a 52-week high of $131.96. The one-year price target of $129.09 is higher than the opening price of $116.49, causing a number of other analysts to issue statements on the company in recent days. Important and major digressions in the company’s actions, future ision or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the initial recommendation.
The Fed stood pat on interest rates on Wednesday, helping stocks to mostly higher levels but Chairwoman Janet Yellen indicated an interest rate hike is likely by year’s end
On Wednesday, the S&P 500 SPX, +1.09% ended 1.1% higher, while the Dow DJIA, +0.90% jumped by 0.9%, or 164 points, as each exchange finished in positive territory for a second consecutive day.
The tech-heavy Nasdaq Composite COMP, +1.03% tacked on 1% and scored a record closing high.
S&P 500 futures ESZ6, +0.36% were up 6.55 points, or 0.3%, to 2,162.75 early Thursday, while Dow Jones Industrial Average futures YMZ6, +0.37% rose 58 points, or 0.3%, to 18,276. Nasdaq-100 futures NQZ6, +0.39% gained 16.25 points, or 0.3%, to 4,866.25.
Shares of McDonald’s Corp. (NYSE: MCD) opened at $116.49 yesterday trading between $115.96 and $117.05, and last traded at $116.93, a spike of $0.48 from the previous closing price.
McDonald’s Corp. (NYSE: MCD) now has a market cap of 99.78B.
The stock’s average daily volume is 5,022,400 shares out of a total float 852,952,000 and some 4,528,993 shares traded hands yesterday, below normal. Swing traders often use increases in trading volume to identify large volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, just a day of significant buy side trading is not enough to affirm a trend. So market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for McDonald’s Corp. (NYSE: MCD) have ranged from $95.78 – 131.96, and the stock now has a 50-day MA of $116.54 and 200-day MA of $122.25. Today’s last price is 0.11% 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 seek companies that have been successful at growing their earnings by at least 25% for the past 3 years.
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