Ritchie Bros. Auctioneers Inc. (NYSE: RBA) shares rose in value Wednesday Nov 30 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 hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.
The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.
The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.
Analysts at Zacks Investment Research upgraded shares of Ritchie Bros. Auctioneers Inc. (NYSE: RBA) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $38.59. As a means of comparison, a number of other analysts have spoken on the company recently, and Ritchie Bros. Auctioneers Inc. has secured a consensus one-year price target of $38.72, higher than the opening price of $37.99, a difference of 10.09 percent. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of Ritchie Bros. Auctioneers Inc. (NYSE: RBA) opened at $37.99 on Tuesday and has traded in a range between, $37.87 and $38.40, and last traded at $38.38, an increase of $0.65 or 1.72% over the previous closing price.
Ritchie Bros. Auctioneers Inc. (NYSE: RBA) now has a market cap of 4.09B.
Ritchie Bros. Auctioneers Inc. (NYSE: RBA) Average Daily Trading Volume
The stock’s average daily volume is 599,225 shares out of a total float 106,324,000 and some 60,479 shares traded hands yesterday, below normal. Trading volume is likely to increase in the next few days as investors often use swings in trading volume to pinpoint substantial volume accumulation or distribution by institutional investors.
However, a single day of high volume buy side trading is not enough to affirm a trend. As such, market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Ritchie Bros. Auctioneers Inc. (NYSE: RBA) 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.
Traders can make more effective choices on trades when they follow the trading habits of professional investors.
With that in mind, Ritchie Bros. Auctioneers Inc. (NYSE: RBA) now has a 50-day MA of $35.84 and 200-day MA of $33.63. It has traded in a 52-week range between $21.03 – 38.59 and today’s last price is 0.54%% lower than the 52 week high of $38.59.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% for 3 consecutive years.
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