Allegiant Travel Co. (ALGT) Stock Down After Price Target Increase at Cowen and Company

Allegiant Travel Co. (NASDAQ: ALGT) shares were down on Wednesday Nov 30 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.

Meanwhile, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.

The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.

The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.

Allegiant Travel Co. (NASDAQ: ALGT) had its price target increased by equities researchers at Cowen and Company from $147.00 to $152.00. With a rating of Market Perform on the shares, the company has a 52-week high of $193.36. The one-year price target of $167.58 is above the opening price of $166.80, that has caused a fair amount of other analysts to report on the company recently.

Shares of Allegiant Travel Co. (NASDAQ: ALGT) opened at $166.80 on Tuesday and has traded in a range between, $164.57 and $166.80, and last traded at $166.05, a drop of $0.25 per share or -0.15% compared to the previous closing price.

Allegiant Travel Co. (NASDAQ: ALGT) now has a market cap of 2.72B.

Allegiant Travel Co. (NASDAQ: ALGT) Average Daily Trading Volume

9,960 shares crossed the trading desk yesterday, lower than the average, out of a total float 11,698,000. Swing traders often use upticks in trading volume to pinpoint heavy volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.

While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these have teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you’re considering.

Allegiant Travel Co. (NASDAQ: ALGT) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

With that in mind, Allegiant Travel Co. (NASDAQ: ALGT) now has a 50-day MA of $152.05 and 200-day MA of $141.97. It has traded in a 52-week range between $121.70 – 193.36 and today’s last price is 14.12%% lower than the 52 week high of $193.36.

Earnings growth is an important factor to look at when buying stocks and investors seek companies that have been successful at growing their earnings by at least 25% over the past 3 years.

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