Valvoline (NYSE: VVV) shares slid back in value Friday Dec 2 with 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 edged lower on Friday, with major indexes on track for a weekly decline.
The Dow Jones Industrial Average DJIA, -0.14% fell 23 points, or 0.1%, to 19,169, while the S&P 500 SPX, +0.09% lost 1.2 point to 2,190, a move of less than 0.1%. The Nasdaq Composite COMP, -0.15% fell 5.3 points, or 0.1%, to 5,247.
Analysts at Longbow Research upgraded shares of Valvoline (NYSE: VVV) from Neutral to Buy today. With a rating of Buy on the shares, Valvoline has a 52-week high of $24.51. As a means of comparison, a number of other analysts have issued reports on the company recently, and Valvoline has secured a consensus one-year price target of $23.44, above the opening price of $20.84, a difference of 11.67 percent. Usually, after analysts assign an upgrade report on a stock, they will later issue recurring revisions, often followed by a price target change.
Valvoline (NYSE: VVV) shares last traded at $20.08, a drop of $0.20 per share or -0.99% from the previous closing price. Opening at $20.84, they varied from $19.94 and $21.09 throughout the day.
Valvoline (NYSE: VVV) now has a market cap of 4.12B.
Valvoline (NYSE: VVV) Average Daily Trading Volume
80,658 shares traded hands yesterday, below the norm, out of a total float 34,450,000. Momentum traders often use upticks in trading volume to pinpoint substantial volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Valvoline (NYSE: VVV) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Valvoline (NYSE: VVV) now has a 50-day MA of $20.97 and 200-day MA of $21.63. It has traded in a 52-week range between $18.30 – 24.5100 and today’s last price is 18.07%% lower than the 52 week high of $24.51.
Earnings growth is a critical factor to research when investing in stocks and investors seek companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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