Carnival Corp. (CCL) stock coverage initiated with “Buy” at HSBC

Carnival Corp. (NYSE: CCL) shares rose in early trading today on lower trade volume than normal after more analysts initiated coverage on the stock.

Analysts at HSBC initiated coverage on Carnival Corp. (NYSE: CCL) stock, rating the company at Buy. With a rating of Buy on the stock, Carnival Corp. has a 52-week high of $55.77. The one-year price target of $211.85 is above the opening price of $48.74, resulting a number of other analysts to comment on the company in recent days. Analysts and brokerage firms will subsequently re periodic updates after beginning or initiating coverage. Price changes targets are not unusual.

Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.

The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.

The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.

The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298

Carnival Corp. (NYSE: CCL) shares last traded at $49.45, a spike of $0.63 or 0.01 over the previous closing price. Opening at $48.74, they ranged from $48.74 and $49.47 throughout the day.

Carnival Corp. (NYSE: CCL) now has a market cap of 36.09B.

Carnival Corp.Trading Volume

911,953 shares traded hands yesterday, below the norm, out of a total float 380,337,000. Swing traders often use upticks in trading volume to pinpoint substantial volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming days.

However, a single day of heavy buy side trading is not enough to assert a trend. So market traders will continue to look for institutional sponsorship as a signal 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.

Professional investors such as these retain teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Carnival Corp. 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, Carnival Corp. (NYSE: CCL) now has a 50-day MA of $46.74 and 200-day MA of $47.81. It has traded in a 52-week range between $40.52 – 55.770 and today’s last price is 0.11% lower than the 52 week high of $55.77.

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 at least 25% or more for 3 consecutive years.

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