Dick’s Sporting Goods Inc. (NYSE: DKS) shares rose on Thursday Nov 17 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, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
Analysts at Brean Capital reiterated a Buy rating on shares of Dick’s Sporting Goods Inc. (NYSE: DKS) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Buy on the stock. The one-year price target of $63.89 is higher than the opening price of $58.00, causing a number of other analysts to issue statements on the company recently. Looking back over the last year, Dick’s Sporting Goods Inc. stock has a high of $62.88. Stock prices sometimes get a spike to the upside when analysts reiterate coverage.
Dick’s Sporting Goods Inc. (NYSE: DKS) shares last traded at $58.63, which is a spike of $0.83 or 1.44% compared to the previous closing price. Opening at $58.00, they ranged from $57.37 and $58.67 throughout the day.
Dick’s Sporting Goods Inc. (NYSE: DKS) currently has a market cap of 6.62B.
Dick’s Sporting Goods Inc. (NYSE: DKS) Average Daily Trading Volume
255,566 shares traded hands yesterday, below normal, out of a total float 85,802,000. Investors often use upticks in trading volume to determine large volume aggregation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
Dick’s Sporting Goods Inc. (NYSE: DKS) 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 effective judgments on trades when they follow the activity of professional investors.
Trades for Dick’s Sporting Goods Inc. (NYSE: DKS) have ranged from $33.44 – 62.88, and the stock now has a 50-day MA of $56.94 and 200-day MA of $51.60. Today’s last price is 6.76%% lower than the 52 week high of $62.88.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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