Coach Inc. (NYSE: COH) shares fell yesterday on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Coach Inc. (NYSE: COH) had its Outperform rating reiterated by equities researchers at Wells Fargo & Co. in a research note to investors. Wells Fargo & Co. currently has a rating of Outperform on the stock. The one-year price target of $44.40 is above the opening price of $36.80, that has caused a number of other analysts to comment on the company recently. Looking back over the last 52 weeks, Coach Inc. stock has a high of $43.71. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
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 Coach Inc. (NYSE: COH) opened at $36.80 yesterday trading between $36.64 and $37.09, and last traded at $36.65, which is a drop of $0.12 per share or -0.00 over the previous closing price.
Coach Inc. (NYSE: COH) currently has a market cap of 10.22B.
Coach Inc.Trading Volume
The stock’s average daily volume is 3,607,700 shares out of a total float 278,270,000 and some 3,485,203 shares traded hands yesterday, lower than normal. Momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming 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 delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Coach 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 investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Coach Inc. (NYSE: COH) now has a 50-day MA of $37.45 and 200-day MA of $39.44. It has traded in a 52-week range between $28.70 – 43.71 and today’s last price is 0.16% lower than the 52 week high of $43.71.
Earnings growth is ann important factor to consider when investing in stocks and investors seek companies that have grown their earnings at least 25% or more over the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.