Diageo PLC (NYSE: DEO) shares rose on Friday Dec 2 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks edged lower on Friday, with major indexes on track for a weekly decline.
The Dow Jones Industrial Average DJIA, -0.14% fell 23 points, or 0.1%, to 19,169, while the S&P 500 SPX, +0.09% lost 1.2 point to 2,190, a move of less than 0.1%. The Nasdaq Composite COMP, -0.15% fell 5.3 points, or 0.1%, to 5,247.
Analysts at JPMorgan Chase & Co. reiterated a Buy rating on shares of Diageo PLC (NYSE: DEO) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Buy on the shares, Diageo PLC has a 52-week high of $117.84. A number of other analysts have spoken on the company in recent days, and Diageo PLC has secured a consensus one-year price target of $124.86, higher than the opening price of $100.45. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Diageo PLC (NYSE: DEO) opened at $100.45 on Tuesday and has traded in a range between, $99.92 and $100.45, and last traded at $100.08, an increase of $0.13 or 0.13% over the previous closing price.
Diageo PLC (NYSE: DEO) now has a market cap of 62.81B.
Diageo PLC (NYSE: DEO) Average Daily Trading Volume
177,423 shares crossed the trading desk yesterday, below the norm, out of a total float 608,497,000. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to determine substantial volume growth or dissemination by institutional investors.
However, one day of significant buy side trading is not enough to determine a trend. So market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.
Diageo PLC (NYSE: DEO) 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 successful trades.
With that in mind, Diageo PLC (NYSE: DEO) now has a 50-day MA of $104.55 and 200-day MA of $110.17. It has traded in a 52-week range between $99.46 – 117.84 and today’s last price is 15.07%% lower than the 52 week high of $117.84.
Earnings growth is an important factor to look at when investing in stocks and investors identify companies that have grown their earnings by at least 25% for 3 consecutive years.
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