Under Armour, Inc. (NYSE: UAA) shares rose in value on Tuesday February 14 on lower 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 Morgan Stanley upgraded shares of Under Armour, Inc. (NYSE: UAA) from Underweight to Equal Weight today. Morgan Stanley currently has a rating of Equal Weight on the stock. A number of other analysts have issued reports on the company recently, and the company has secured a consensus one-year price target of $23.50, above the opening price of $21.55. Under Armour, Inc. stock has a 52-week high of $47.94. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Shares of Under Armour, Inc. (NYSE: UAA) opened at $21.55 yesterday trading between $21.36 and $21.61, and last traded at $21.49, which represents an increase of $0.17 from the previous closing price.
Under Armour, Inc. (NYSE: UAA) now has a market cap of 9.42B.
Under Armour, Inc. (NYSE: UAA) Average Daily Trading Volume
The stock’s average daily volume is 5,686,010 shares out of a total float 367,283,000 and some 876,056 shares traded hands yesterday, 50 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal 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.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
Under Armour, Inc. (NYSE: UAA) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Under Armour, Inc. (NYSE: UAA) have ranged from $20.44 – 47.94, and the stock now has a 50-day MA of $27.05 and 200-day MA of $33.91. Today’s last price is 55.18%% below the 52 week high of $47.94.
Earnings growth is a critical factor to look at when investing in stocks and investors seek companies that have raised their earnings by at least 25% for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.