Scotts Miracle-Gro Company (The) (NYSE: SMG) shares rose in value on Tuesday February 14 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Analysts at Zacks Investment Research upgraded shares of Scotts Miracle-Gro Company (The) (NYSE: SMG) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $98.82. The one-year price target of $99.33 is above the opening price of $91.96, that has caused a number of other analysts to issue statements on the stock in recent days. Usually, after analysts issue an upgrade report on a stock, they will later issue recurring revisions, usually followed by a price target change.
Yesterday Scotts Miracle-Gro Company (The) (NYSE: SMG) shares last traded at $91.93, which represents a jump of $0.06 compared to the previous closing price. Opening at $91.96, they ranged from $91.53 and $92.18 throughout the day.
Scotts Miracle-Gro Company (The) (NYSE: SMG) now has a market cap of 5.50B.
Scotts Miracle-Gro Company (The) (NYSE: SMG) Average Daily Trading Volume
The stock’s average daily volume is 520,310 shares out of a total float 59,498,000 and some 32,536 shares crossed the trading desk yesterday, 64 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Scotts Miracle-Gro Company (The) (NYSE: SMG) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for Scotts Miracle-Gro Company (The) (NYSE: SMG) have ranged from $64.55 – 98.82, and the stock now has a 50-day MA of $93.49 and 200-day MA of $87.63. Today’s last price is 6.97%% under the 52 week high of $98.82.
Earnings growth is an important factor to research when investing in stocks and investors seek companies that have increased their earnings by at least 25% over 3 consecutive years.
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