Coty Inc. (NYSE: COTY) shares rose in value in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Bank of America Corp. upgraded shares of Coty Inc. (NYSE: COTY) from Neutral to Buy today. The company currently has a rating of Buy on the shares. A number of other analysts have issued reports on the stock recently, and Coty Inc. has secured a consensus one-year price target of $27.94, above the opening price of $23.79. Coty Inc. stock has a 52-week high of $31.60. Share prices often move to the upside on recommendations and new price targets of professional analysts.
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
Coty Inc. (NYSE: COTY) shares last traded at $23.79, a spike of $0.28 or 0.01 compared to the previous closing price. Opening at $23.79, they varied from $23.41 and $23.85 throughout the day.
Coty Inc. (NYSE: COTY) now has a market cap of 7.99B.
Coty Inc.Trading Volume
The stock’s average daily volume is 5,537,180 shares out of a total float 39,549,000 and some 4,977,440 shares crossed the trading desk yesterday, lower than normal. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to determine large volume growth or circulation by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% above 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.
These instituitional investors retain teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Coty 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.
Traders are able to make make educated trades when they track the trading habits of professional investors.
Trades for Coty Inc. (NYSE: COTY) have ranged from $21.48 – 31.600, and the stock now has a 50-day MA of $25.83 and 200-day MA of $26.93. Today’s last price is 0.25% lower than the 52 week high of $31.60.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% over 3 consecutive years.
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