The Children’s Place Retail Stores Inc. (NASDAQ: PLCE) shares rose in value Monday Nov 14 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close.
The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Bank of America Corp. upgraded shares of The Children’s Place Retail Stores Inc. (NASDAQ: PLCE) from Underperform to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $90.00. The one-year price target of $88.27 is above the opening price of $85.35, that has caused a fair amount of other analysts to comment on the company recently. Share prices often move to the upside on recommendations and new price targets of professional brokerage firms.
The Children’s Place Retail Stores Inc. (NASDAQ: PLCE) shares last traded at $86.40, which is a spike of $3.80 or 4.60% compared to the previous closing price. Opening at $85.35, they ranged from $84.90 and $89.40 throughout the day.
The Children’s Place Retail Stores Inc. (NASDAQ: PLCE) now has a market cap of 1.59B.
The Children’s Place Retail Stores Inc. (NASDAQ: PLCE) Average Daily Trading Volume
1,434,378 shares traded hands yesterday, above the average, out of a total float 18,087,000. Substantial increases in trading volume and price inflation together could indicate considerable volume accumulation by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to 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’re considering.
The Children’s Place Retail Stores Inc. (NASDAQ: PLCE) 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 investors to make those trends work in their favor and increase the number of winning trades.
Trades for The Children’s Place Retail Stores Inc. (NASDAQ: PLCE) have ranged from $46.74 – 90.00, and the stock now has a 50-day MA of $76.25 and 200-day MA of $77.94. Today’s last price is 4.00%% under the 52 week high of $90.00.
Earnings growth is an important factor to research when buying stocks and investors watch for companies that have grown their earnings by at least 25% over 3 consecutive years.
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