McGrath RentCorp (NASDAQ: MGRC) shares slid back in value Tuesday Nov 22 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.
The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.
Analysts at Zacks Investment Research upgraded shares of McGrath RentCorp (NASDAQ: MGRC) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $37.25. The one-year price target of $40.00 is higher than the opening price of $36.35, resulting a number of other analysts to issue statements on the company recently. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
McGrath RentCorp (NASDAQ: MGRC) shares last traded at $36.30, a decrease of $0.05 per share or -0.14% compared to the previous closing price. Opening at $36.35, they ranged from $36.14 and $36.35 throughout the day.
McGrath RentCorp (NASDAQ: MGRC) now has a market cap of 867.82M.
McGrath RentCorp (NASDAQ: MGRC) Average Daily Trading Volume
665 shares crossed the trading desk yesterday, below normal, out of a total float 23,294,000. Trading volume is likely to increase in the next few days as investors often use swings in trading volume to identify substantial volume growth or circulation by institutional investors.
However, just a day of heavy buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
McGrath RentCorp (NASDAQ: MGRC) 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 affect—it allows for traders to make more effective decisions on trades.
Trades for McGrath RentCorp (NASDAQ: MGRC) have ranged from $21.46 – 37.25, and the stock now has a 50-day MA of $32.46 and 200-day MA of $31.00. Today’s last price is 2.55%% lower than the 52 week high of $37.25.
Earnings growth is a crucial factor to look at when buying stocks and investors watch for companies that have increased their earnings by at least 25% for the past 3 years.
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