Blue Buffalo Pet Products Inc. (NASDAQ: BUFF) shares rose yesterday on heavier trade volume than normal after more analysts initiated coverage on the stock.
Analysts at DA Davidson initiated coverage on Blue Buffalo Pet Products Inc. (NASDAQ: BUFF) stock, starting the company at Buy. The company currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have spoken on the company recently, and Blue Buffalo Pet Products Inc. has earned a consensus one-year price target of $30.00, higher than the opening price of $24.23. Blue Buffalo Pet Products Inc. stock has a 52-week high of $27.50. After beginning or initiating coverage, analysts and brokerage firms will subsequently re periodic updates. Changes in price targets are not unheard of.
Meanwhile, the Dow Jones Industrial Average DJIA, +0.62% finished up 112.58 points, or 0.6%, at 18,281.03 yesterday.
The Nasdaq Composite Index COMP, +0.50% rose 26.36 points, or 0.5%, to end at 5,316.02, and is up 0.1% for the week to date.
The S&P 500 index SPX, +0.43% added 9.24 points, or 0.4%, to close at 2,159.73.
Shares of Blue Buffalo Pet Products Inc. (NASDAQ: BUFF) opened at $24.23 yesterday trading between $23.93 and $24.57, and last traded at $24.46, a jump of $0.75 or 0.03 from the previous closing price.
Blue Buffalo Pet Products Inc. (NASDAQ: BUFF) currently has a market cap of 4.80B.
Blue Buffalo Pet Products Inc.Trading Volume
The stock’s average daily volume is 1,392,770 shares out of a total float 106,574,000 and some 6,195,506 shares crossed the trading desk yesterday, higher than the norm. Excessive volume aggregation by institutional investors may be in the near future as the combination of substantial gains in trading volume and price inflation can be deciding components.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to indicate 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.
Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Blue Buffalo Pet Products 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Blue Buffalo Pet Products Inc. (NASDAQ: BUFF) now has a 50-day MA of $25.07 and 200-day MA of $25.09. It has traded in a 52-week range between $15.19 – 27.50 and today’s last price is 0.11% lower than the 52 week high of $27.50.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more over 3 consecutive years.
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