La Quinta Holdings Inc. (NYSE: LQ) shares rose in value Thursday Dec 15 with slower 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 La Quinta Holdings Inc. (NYSE: LQ) from Underperform to Neutral today. With a rating of Neutral on the shares, the company has a 52-week high of $14.85. A number of other analysts have spoken on the stock recently, and La Quinta Holdings Inc. has earned a consensus one-year price target of $11.91, a decrease compared to the opening price of $13.94, a difference of 8.57 percent. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of La Quinta Holdings Inc. (NYSE: LQ) opened at $13.94 on Tuesday and has traded in a range between, $13.65 and $13.99, and last traded at $13.89, an increase of $0.51 or 3.81% over the previous closing price.
La Quinta Holdings Inc. (NYSE: LQ) now has a market cap of 1.62B.
La Quinta Holdings Inc. (NYSE: LQ) Average Daily Trading Volume
135,903 shares crossed the trading desk yesterday, below the norm, out of a total float 70,494,000. Momentum traders often use increases in trading volume to pinpoint substantial volume growth 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, however, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive cue 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 teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
La Quinta Holdings Inc. (NYSE: LQ) 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 marking the activity of these professional investors—and the moving averages they influence—it allows for traders to make more effective choices on trades.
With that in mind, La Quinta Holdings Inc. (NYSE: LQ) now has a 50-day MA of $11.67 and 200-day MA of $11.51. It has traded in a 52-week range between $9.42 – 14.85 and today’s last price is 6.46%% lower than the 52 week high of $14.85.
Earnings growth is an important factor to research when buying stocks and investors identify companies that have raised their earnings by at least 25% over a 3 year period.
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