Zoe’s Kitchen, Inc. (NYSE: ZOES) shares rose on Tuesday February 14 on 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 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.
Buckingham Research analysts reiterated its Buy rating on Zoe’s Kitchen, Inc. (NYSE: ZOES) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Buy on the shares, Zoe’s Kitchen, Inc. has a 52-week high of $41.76. The one-year price target of $26.09 is above the opening price of $22.88, that has caused a number of other analysts to comment on the company in recent days. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Zoe’s Kitchen, Inc. (NYSE: ZOES) shares last traded at $22.91, which is an increase of $0.01 compared to the previous closing price. Opening at $22.88, they ranged from $22.64 and $22.98 throughout the day.
Zoe’s Kitchen, Inc. (NYSE: ZOES) currently has a market cap of 445.83M.
Zoe’s Kitchen, Inc. (NYSE: ZOES) Average Daily Trading Volume
12,921 shares traded hands yesterday, 6 percent lower than the norm, out of a total float 19,181,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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, conversely, 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.
Institutional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you are researching.
Zoe’s Kitchen, Inc. (NYSE: ZOES) 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 investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Zoe’s Kitchen, Inc. (NYSE: ZOES) now has a 50-day MA of $22.74 and 200-day MA of $25.37. It has traded in a 52-week range between $20.20 – 41.76 and today’s last price is 45.14%% lower than the 52 week high of $41.76.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings by at least 25% for 3 consecutive years.
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