Dollar General Corp. (NYSE: DG) shares rose in value Monday Dec 5 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, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Vetr Inc. upgraded shares of Dollar General Corp. (NYSE: DG) from Buy to Strong-Buy today. With a rating of Strong-Buy on the stock, the company has a 52-week high of $96.88. A number of other analysts have spoken on the company recently, and Dollar General Corp. has secured a consensus one-year price target of $80.35, above the opening price of $74.94, a difference of 10.61 percent. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of Dollar General Corp. (NYSE: DG) opened at $74.94 on Tuesday and has traded in a range between, $74.65 and $75.71, and last traded at $75.71, which represents a jump of $1.15 or 1.54% over the previous closing price.
Dollar General Corp. (NYSE: DG) now has a market cap of 21.33B.
Dollar General Corp. (NYSE: DG) Average Daily Trading Volume
264,499 shares traded hands yesterday, below normal, out of a total float 257,765,000. Momentum traders often use increases in trading volume to pinpoint large volume aggregation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
While an increase in trading for one day will not mean much, conversely, 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 very important.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Dollar General Corp. (NYSE: DG) 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 winning trades.
With that in mind, Dollar General Corp. (NYSE: DG) now has a 50-day MA of $72.52 and 200-day MA of $81.68. It has traded in a 52-week range between $66.50 – 96.88 and today’s last price is 21.85%% lower than the 52 week high of $96.88.
Earnings growth is an important factor to consider when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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