Del Taco Restaurants Inc. (NASDAQ: TACO) shares rose in value Tuesday Dec 6 with lighter 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 looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.
The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%
Analysts at Zacks Investment Research upgraded shares of Del Taco Restaurants Inc. (NASDAQ: TACO) from Sell to Hold today. With a rating of Hold on the stock, Del Taco Restaurants Inc. has a 52-week high of $15.26. A number of other analysts have spoken on the company recently, and the company has secured a consensus one-year price target of $15.64, above the opening price of $14.84. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Del Taco Restaurants Inc. (NASDAQ: TACO) shares last traded at $14.84, a jump of $0.07 or 0.47% compared to the previous closing price. Opening at $14.84, they fluctuated from $14.75 and $14.91 throughout the day.
Del Taco Restaurants Inc. (NASDAQ: TACO) currently has a market cap of 584.18M.
Del Taco Restaurants Inc. (NASDAQ: TACO) Average Daily Trading Volume
The stock’s average daily volume is 469,652 shares out of a total float 27,486,000 and some 12,308 shares traded hands yesterday, lower than normal. Momentum traders often use increases in trading volume to identify substantial volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
While an increase in trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these 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.
Del Taco Restaurants Inc. (NASDAQ: TACO) 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 following the activity of these professional investors and how they influence moving averages, traders are able to make make smarter trades.
Trades for Del Taco Restaurants Inc. (NASDAQ: TACO) have ranged from $8.37 – 15.26, and the stock now has a 50-day MA of $14.00 and 200-day MA of $11.29. Today’s last price is 2.75%% lower than the 52 week high of $15.26.
Earnings growth is an important factor to look at when buying stocks and investors look for companies that have raised their earnings at least 25% or more over the past 3 years.
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