Royal Caribbean Cruises Ltd. (NYSE: RCL) shares slid back in value Monday Dec 19 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 DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Analysts at Vetr Inc. upgraded shares of Royal Caribbean Cruises Ltd. (NYSE: RCL) from Hold to Buy today. With a rating of Buy on the stock, Royal Caribbean Cruises Ltd. has a 52-week high of $103.40. The one-year price target of $91.95 is above the opening price of $83.19, causing a number of other analysts to comment on the company recently. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Royal Caribbean Cruises Ltd. (NYSE: RCL) shares last traded at $82.93, a drop of $0.62 per share or -0.74% from the previous closing price. Opening at $83.19, they fluctuated from $81.95 and $83.80 throughout the day.
Royal Caribbean Cruises Ltd. (NYSE: RCL) currently has a market cap of 17.80B.
Royal Caribbean Cruises Ltd. (NYSE: RCL) Average Daily Trading Volume
The stock’s average daily volume is 2,156,290 shares out of a total float 175,841,000 and some 216,140 shares traded hands yesterday, below the average. Investors often use upticks in trading volume to identify substantial volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.
However, a single day of heavy buy side trading is not enough to determine a trend. So market traders will continue to look for institutional sponsorship as a cue 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.
These professional investors retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Royal Caribbean Cruises Ltd. (NYSE: RCL) 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 well planned trades when they track the activity of professional investors.
Trades for Royal Caribbean Cruises Ltd. (NYSE: RCL) have ranged from $64.21 – 103.40, and the stock now has a 50-day MA of $81.23 and 200-day MA of $73.83. Today’s last price is 19.80%% lower than the 52 week high of $103.40.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% for the past 3 years.
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