Yum Brands Inc. (NYSE: YUM) shares rose in value in early trade Wednesday with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Credit Suisse Group AG upgraded shares of Yum Brands Inc. (NYSE: YUM) from Neutral to Outperform today. Credit Suisse Group AG currently has a rating of Outperform on the stock. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has earned a consensus one-year price target of $97.85, above the opening price of $86.77, a difference of 11.32 percent. Yum Brands Inc. stock has a 52-week high of $91.99. Share prices sometimes get a boost to the upside when analysts upgrade a stock.
U.S. stocks mostly climbed on Wednesday as crude-oil prices traded above $51 a barrel.
The Dow Jones Industrial Average DJIA, +0.18% gained 33 points, or 0.2% at 18,195, the S&P 500 index SPX, +0.07% advanced 2 points, or less than 0.1%, at 2,141, while the Nasdaq Composite Index COMP, -0.08% traded little-changed at 5,240.
U.S. stocks closed higher Tuesday as investors welcomed stronger-than-expected quarterly results from a host of companies
The S&P 500 index SPX, +0.62% finished up 13.10 points, or 0.6%, at 2,139.60, with all 11 main sectors trading higher.
The Dow Jones Industrial Average DJIA, +0.42% rose 75.54 points, or 0.4%, to close at 18,161.94.
Meanwhile, the Nasdaq Composite Index COMP, +0.85% added 44.01 points, or 0.9%, to close at 5,243.84.
Shares of Yum Brands Inc. (NYSE: YUM) opened at $86.77 on Monday and traded in a range between, $86.38 and $86.86, and last traded at $86.46, an increase of $0.30 or 0.35% from the previous closing price.
Yum Brands Inc. (NYSE: YUM) currently has a market cap of 32.51B.
Yum Brands Inc.Trading Volume
449,915 shares crossed the trading desk yesterday, below the average, out of a total float 354,436,000. Investors often use upticks in trading volume to identify heavy volume aggregation 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 ensure you are buying the right stocks.
Yum Brands Inc. 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— traders are able to make make well planned trades.
With that in mind, Yum Brands Inc. (NYSE: YUM) now has a 50-day MA of $89.10 and 200-day MA of $85.66. It has traded in a 52-week range between $64.58 – 91.99 and today’s last price is 6.01%% lower than the 52 week high of $91.99.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have grown their earnings by at least 25% over a 3 year period.
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