Ferrari (NASDAQ: RACE) shares rose on Tuesday Nov 22 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.
The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.
Analysts at Berenberg Bank initiated coverage on Ferrari (NASDAQ: RACE) stock, starting the company at Buy. With a rating of Buy on the stock, Ferrari has a 52-week high of $54.99. The one-year price target of $54.63 is above the opening price of $53.83, causing a number of other analysts to report on the company in recent days. Price changes targets are not unusual as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Ferrari (NASDAQ: RACE) shares last traded at $53.95, which is an increase of $0.52 or 0.97% over the previous closing price. Opening at $53.83, they varied from $53.75 and $54.06 throughout the day.
Ferrari (NASDAQ: RACE) now has a market cap of 10.19B.
Ferrari (NASDAQ: RACE) Average Daily Trading Volume
56,311 shares crossed the trading desk yesterday, below the average, out of a total float 167,748,000. Swing traders often use increases in trading volume to pinpoint substantial volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.
However, one day of significant buy side trading is not enough to affirm a trend. As such, market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that investigate thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
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 successful trades.
Trades for Ferrari (NASDAQ: RACE) have ranged from $31.66 – 54.99, and the stock now has a 50-day MA of $52.99 and 200-day MA of $47.00. Today’s last price is 1.89%% under the 52 week high of $54.99.
Earnings growth is an important factor to consider when buying stocks and investors identify companies that have grown their earnings by at least 25% for 3 consecutive years.
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