Best Buy Co. (NYSE: BBY) shares fell on Wednesday Nov 30 with 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, 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.
Best Buy Co. (NYSE: BBY) had its Buy rating reiterated by equities researchers at Wedbush in a research note to investors. With a rating of Buy on the shares, the company has a 52-week high of $47.29. As a means of comparison, a number of other analysts have commented on the stock recently, and Best Buy Co. has secured a consensus one-year price target of $44.74, a decrease compared to the opening price of $45.37, a difference of 9.83 percent. Stock prices sometimes get a bounce to the upside when analysts reiterate coverage.
Best Buy Co. (NYSE: BBY) shares last traded at $45.51, which is a drop of $0.11 per share or -0.24% from the previous closing price. Opening at $45.37, they varied from $45.07 and $45.75 throughout the day.
Best Buy Co. (NYSE: BBY) currently has a market cap of 14.39B.
Best Buy Co. (NYSE: BBY) Average Daily Trading Volume
407,981 shares crossed the trading desk yesterday, below the average, out of a total float 274,505,000. Momentum traders often use swings in trading volume to pinpoint large volume aggregation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
However, just a day of significant buy side trading is not enough to assert a trend. So market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
Best Buy Co. (NYSE: BBY) 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 successful trades.
Trades for Best Buy Co. (NYSE: BBY) have ranged from $25.31 – 47.29, and the stock now has a 50-day MA of $40.49 and 200-day MA of $35.55. Today’s last price is 3.76%% below the 52 week high of $47.29.
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% for 3 consecutive years.
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