Select Comfort Corp. (NASDAQ: SCSS) shares rose on Wednesday Nov 30 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
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.
Wedbush analysts reiterated its Outperform rating on Select Comfort Corp. (NASDAQ: SCSS) in a note to investors, making it one of the more closely watched stocks on Wall Street. Wedbush currently has a rating of Outperform on the stock. A number of other analysts have commented on the stock recently, and Select Comfort Corp. has secured a consensus one-year price target of $22.71, a decrease compared to the opening price of $23.28, a difference of 9.72 percent. Select Comfort Corp. stock has a 52-week high of $28.34. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of Select Comfort Corp. (NASDAQ: SCSS) opened at $23.28 on Tuesday trading between $23.05 and $23.36, and last traded at $23.36, which is a spike of $0.25 or 1.08% from the previous closing price.
Select Comfort Corp. (NASDAQ: SCSS) currently has a market cap of 1.05B.
Select Comfort Corp. (NASDAQ: SCSS) Average Daily Trading Volume
37,748 shares crossed the trading desk yesterday, below the norm, out of a total float 44,065,000. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to pinpoint substantial volume accumulation or circulation by institutional investors.
While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
Select Comfort Corp. (NASDAQ: SCSS) 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— traders are able to make make educated trades.
Trades for Select Comfort Corp. (NASDAQ: SCSS) have ranged from $14.28 – 28.34, and the stock now has a 50-day MA of $20.90 and 200-day MA of $22.93. Today’s last price is 17.57%% below the 52 week high of $28.34.
Earnings growth is a critical factor to research when buying stocks and investors look for companies that have been successful at growing their earnings by at least 25% for a 3 year period.
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