Darden Restaurants Inc. (NYSE: DRI) shares rose in value Thursday Dec 1 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks opened with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Guggenheim upgraded shares of Darden Restaurants Inc. (NYSE: DRI) from Neutral to Buy today. The company currently has a rating of Buy on the stock. A number of other analysts have spoken on the stock recently, and Darden Restaurants Inc. has earned a consensus one-year price target of $69.24, lower than the opening price of $73.86, a difference of 9.32 percent. Darden Restaurants Inc. stock has a 52-week high of $74.99. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Darden Restaurants Inc. (NYSE: DRI) opened at $73.86 on Tuesday trading between $73.56 and $74.44, and last traded at $74.32, a jump of $1.02 or 1.39% over the previous closing price.
Darden Restaurants Inc. (NYSE: DRI) currently has a market cap of 9.15B.
Darden Restaurants Inc. (NYSE: DRI) Average Daily Trading Volume
226,934 shares traded hands yesterday, below the average, out of a total float 122,795,000. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to determine large volume aggregation or distribution by institutional investors.
As with all possible breakouts, investors look for volume to be at least 40%-50% higher 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.
These professional investors retain substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Darden Restaurants Inc. (NYSE: DRI) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Darden Restaurants Inc. (NYSE: DRI) have ranged from $55.01 – 74.99, and the stock now has a 50-day MA of $66.59 and 200-day MA of $64.26. Today’s last price is 0.89%% below the 52 week high of $74.99.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have increased their earnings by at least 25% for the past 3 years.
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