Reynolds American Inc (NYSE: RAI) shares rose in value on Monday February 13 on 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. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Analysts at Vetr Inc. upgraded shares of Reynolds American Inc (NYSE: RAI) from Sell to Hold today. Vetr Inc. currently has a rating of Hold on the shares. The one-year price target of $57.79 is lower than the opening price of $60.63, causing a number of other analysts to report on the stock recently. Looking back over the last 52 weeks, Reynolds American Inc stock has a high of $60.91. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Yesterday Reynolds American Inc (NYSE: RAI) shares last traded at $60.58, which represents a spike of $0.01 from the previous closing price. Opening at $60.63, they ranged from $60.54 and $60.81 throughout the day.
Reynolds American Inc (NYSE: RAI) now has a market cap of 86.38B.
Reynolds American Inc (NYSE: RAI) Average Daily Trading Volume
869,103 shares traded hands yesterday, 108 percent below the average, out of a total float 822,721,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Reynolds American Inc (NYSE: RAI) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Reynolds American Inc (NYSE: RAI) have ranged from $43.38 – 60.91, and the stock now has a 50-day MA of $58.06 and 200-day MA of $52.84. Today’s last price is 0.54%% below the 52 week high of $60.91.
Earnings growth is a critical factor to consider when investing in stocks and investors seek companies that have grown their earnings at least 25% or more for the past 3 years.
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