Ferrari (NASDAQ: RACE) shares slid back in value on Tuesday February 7 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Analysts at Zacks Investment Research upgraded shares of Ferrari (NASDAQ: RACE) from Hold to Strong-Buy today. With a rating of Strong-Buy on the shares, Ferrari has a 52-week high of $65.81. The one-year price target of $60.19 is less than the opening price of $64.47, causing a fair amount of other analysts to report on the company recently. Usually, after analysts assign an upgrade report on a stock, they will later issue other revisions, usually followed by a price target change.
Shares of Ferrari (NASDAQ: RACE) opened at $64.47 yesterday and traded in a range between, $64.30 and $64.55, and last traded at $64.42, a drop of $0.16 from the previous closing price.
Ferrari (NASDAQ: RACE) currently has a market cap of 12.17B.
Ferrari (NASDAQ: RACE) Average Daily Trading Volume
The stock’s average daily volume is 474,339 shares out of a total float 123,410,000 and some 53,616 shares crossed the trading desk yesterday, 111 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Ferrari (NASDAQ: RACE) 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 traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Ferrari (NASDAQ: RACE) now has a 50-day MA of $60.20 and 200-day MA of $53.26. It has traded in a 52-week range between $31.66 – 65.81 and today’s last price is 2.11%% lower than the 52 week high of $65.81.
Earnings growth is an important factor to consider when investing in stocks and investors watch for companies that have raised their earnings at least 25% or more over the past 3 years.
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