McDonald’s Corp. (NYSE: MCD) shares rose on Monday Dec 5 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded 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.
Shares of McDonald’s Corp. (NYSE: MCD) were downgraded by analysts at Vetr Inc. in a note to their investors today. Vetr Inc. currently has a rating of Hold on the stock. As a means of comparison, a number of other analysts have issued reports on the company recently, and the company has earned a consensus one-year price target of $127.24, higher than the opening price of $119.16. McDonald’s Corp. stock has a 52-week high of $131.96. Material and fundamental digressions in the company’s actions, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the initial recommendation.
Shares of McDonald’s Corp. (NYSE: MCD) opened at $119.16 on Tuesday trading between $119.15 and $120.34, and last traded at $119.45, which represents a jump of $1.21 or 1.02% compared to the previous closing price.
McDonald’s Corp. (NYSE: MCD) currently has a market cap of 99.20B.
McDonald’s Corp. (NYSE: MCD) Average Daily Trading Volume
742,793 shares traded hands yesterday, lower than the norm, out of a total float 830,061,000. Swing traders often use upticks in trading volume to pinpoint large volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
While higher 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 delivers a positive signal 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.
Professional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
McDonald’s Corp. (NYSE: MCD) 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 investors to make those trends work in their favor and increase the number of successful trades.
Trades for McDonald’s Corp. (NYSE: MCD) have ranged from $110.33 – 131.96, and the stock now has a 50-day MA of $115.35 and 200-day MA of $118.30. Today’s last price is 9.48%% lower than the 52 week high of $131.96.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have grown their earnings at least 25% or more over 3 consecutive years.
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