Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) shares rose in value Wednesday Dec 14 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Bank of America Corp. upgraded shares of Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) from Underperform to Neutral today. The company currently has a rating of Neutral on the stock. The one-year price target of $52.57 is less than the opening price of $53.45, resulting a number of other analysts to comment on the stock in recent days. Looking back over the last year, Red Robin Gourmet Burgers Inc. stock has a high of $68.97. Usually, after analysts publish an upgrade report on a stock, they will subsequently issue recurring revisions, usually followed by a price target change.
Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) shares last traded at $54.05, which represents a jump of $2.70 or 5.26% over the previous closing price. Opening at $53.45, they ranged from $53.45 and $54.95 throughout the day.
Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) now has a market cap of 694.92M.
Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) Average Daily Trading Volume
57,338 shares crossed the trading desk yesterday, below normal, out of a total float 12,720,000. Swing traders often use increases in trading volume to pinpoint substantial volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
While higher trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) 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, Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) now has a 50-day MA of $50.81 and 200-day MA of $49.30. It has traded in a 52-week range between $40.85 – 68.97 and today’s last price is 21.63%% lower than the 52 week high of $68.97.
Earnings growth is an important factor to research when investing in stocks and investors seek companies that have raised their earnings at least 25% or more over 3 consecutive years.
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