Extended Stay America Inc. (NYSE: STAY) shares rose in value Thursday Dec 15 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Bank of America Corp. upgraded shares of Extended Stay America Inc. (NYSE: STAY) from Neutral to Buy today. Bank of America Corp. currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $17.46, higher than the opening price of $16.79. Extended Stay America Inc. stock has a 52-week high of $17.08. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of Extended Stay America Inc. (NYSE: STAY) opened at $16.79 on Tuesday trading between $16.30 and $16.79, and last traded at $16.69, which represents a jump of $0.55 or 3.41% over the previous closing price.
Extended Stay America Inc. (NYSE: STAY) now has a market cap of 3.31B.
Extended Stay America Inc. (NYSE: STAY) Average Daily Trading Volume
114,185 shares traded hands yesterday, below normal, out of a total float 96,533,000. Momentum traders often use swings in trading volume to determine heavy volume growth or circulation by institutional investors, so look for trading volume to pick up in the coming days.
As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Extended Stay America Inc. (NYSE: STAY) 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 can make smarter trades when they track the activity of professional investors.
Trades for Extended Stay America Inc. (NYSE: STAY) have ranged from $10.56 – 17.08, and the stock now has a 50-day MA of $15.25 and 200-day MA of $14.64. Today’s last price is 2.28%% under the 52 week high of $17.08.
Earnings growth is an important factor to look at when buying stocks and investors seek companies that have raised their earnings at least 25% or more over a 3 year period.
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