Acuity Brands Inc. (NYSE: AYI) shares rose on Tuesday Nov 22 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.
The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.
Analysts at Deutsche Bank AG initiated coverage on Acuity Brands Inc. (NYSE: AYI) stock, starting the company at Buy. The company currently has a rating of Buy on the shares. The one-year price target of $277.40 is higher than the opening price of $253.11, that has caused a fair amount of other analysts to issue statements on the stock recently. Looking back over the last 52 weeks, Acuity Brands Inc. stock has a high of $280.89. Changes in price targets are not uncommon as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Shares of Acuity Brands Inc. (NYSE: AYI) opened at $253.11 on Tuesday trading between $252.67 and $253.91, and last traded at $253.05, an increase of $1.50 or 0.60% over the previous closing price.
Acuity Brands Inc. (NYSE: AYI) now has a market cap of 10.97B.
Acuity Brands Inc. (NYSE: AYI) Average Daily Trading Volume
The stock’s average daily volume is 454,111 shares out of a total float 42,892,000 and some 11,678 shares traded hands yesterday, below normal. Swing traders often use swings in trading volume to pinpoint substantial volume growth or circulation by institutional investors, so trading volume is likely to increase in the next few days.
While an increase in trading for short periods 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 cue to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
Acuity Brands Inc. (NYSE: AYI) 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 marking the activity of these professional investors—and the moving averages they affect— traders are able to make make smarter trades.
Trades for Acuity Brands Inc. (NYSE: AYI) have ranged from $169.42 – 280.8900, and the stock now has a 50-day MA of $240.94 and 200-day MA of $255.33. Today’s last price is 9.91%% lower than the 52 week high of $280.89.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% for the past 3 years.
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