Coca-Cola Co. (KO) Shares Slip, Investors Watching Closely, Here is Why

Coca-Cola Co. (NYSE: KO) shares rose on Tuesday Dec 13 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.

The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.

Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting

Shares of Coca-Cola Co. (NYSE: KO) were downgraded by analysts at Deutsche Bank AG in a note to their investors today. With a rating of Hold on the shares, Coca-Cola Co. has a 52-week high of $47.13. The one-year price target of $46.54 is higher than the opening price of $41.72, resulting a number of other analysts to comment on the company in recent days. Material and crucial digressions in the company’s operations, future vision or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the initial recommendation.

Coca-Cola Co. (NYSE: KO) shares last traded at $41.93, which is a jump of $0.03 or 0.07% compared to the previous closing price. Opening at $41.72, they ranged from $41.54 and $41.96 throughout the day.

Coca-Cola Co. (NYSE: KO) currently has a market cap of 180.84B.

Coca-Cola Co. (NYSE: KO) Average Daily Trading Volume

2,907,462 shares crossed the trading desk yesterday, lower than the average, out of a total float 3,883,604,000. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to pinpoint large volume aggregation or distribution by institutional investors.

However, a single day of heavy buy side trading is not enough to determine a trend. So market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.

Coca-Cola Co. (NYSE: KO) 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.

Traders are able to make make more impactful judgments on trades when they follow the activity of professional investors.

Trades for Coca-Cola Co. (NYSE: KO) have ranged from $39.88 – 47.13, and the stock now has a 50-day MA of $41.55 and 200-day MA of $43.22. Today’s last price is 11.03%% below the 52 week high of $47.13.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% over a 3 year period.

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