Rent-A-Center Inc. (NASDAQ: RCII) shares fell on Tuesday Dec 6 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.
The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%
Rent-A-Center Inc. (NASDAQ: RCII) had its Market Perform rating reiterated by equities researchers at Raymond James Financial Inc. in a research note to investors. With a rating of Market Perform on the shares, the company has a 52-week high of $16.44. The one-year price target of $12.00 is higher than the opening price of $10.41, resulting a fair amount of other analysts to report on the stock recently. Stock prices sometimes get a spike to the upside when analysts reiterate coverage.
Shares of Rent-A-Center Inc. (NASDAQ: RCII) opened at $10.41 on Tuesday trading between $10.05 and $11.00, and last traded at $10.91, which represents a decrease of $1.00 per share or -8.40% from the previous closing price.
Rent-A-Center Inc. (NASDAQ: RCII) now has a market cap of 579.86M.
Rent-A-Center Inc. (NASDAQ: RCII) Average Daily Trading Volume
The stock’s average daily volume is 1,135,830 shares out of a total float 51,798,000 and some 881,297 shares crossed the trading desk yesterday, lower than the norm. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to identify substantial volume aggregation or circulation by institutional investors.
While an increase in trading for short periods 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.
These instituitional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Rent-A-Center Inc. (NASDAQ: RCII) 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.
Traders can make the best trades when they track the activity of professional investors.
Trades for Rent-A-Center Inc. (NASDAQ: RCII) have ranged from $8.00 – 16.4400, and the stock now has a 50-day MA of $10.77 and 200-day MA of $11.98. Today’s last price is 33.64%% below the 52 week high of $16.44.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% for the past 3 years.
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