Sherwin-Williams Co. (NYSE: SHW) shares rose on Monday Dec 5 with lighter trade volume than normal after more analysts initiated coverage on the stock.
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.
Analysts at Bank of America Corp. initiated coverage on Sherwin-Williams Co. (NYSE: SHW) stock, starting the company at Underperform. With a rating of Underperform on the shares, the company has a 52-week high of $312.48. The one-year price target of $303.53 is higher than the opening price of $264.68, resulting a fair amount of other analysts to report on the company in recent days. Price changes targets are not unusual as analysts and brokerage firms will issue periodic updates after initiating coverage,.
Sherwin-Williams Co. (NYSE: SHW) shares last traded at $265.49, which is a spike of $0.43 or 0.16% from the previous closing price. Opening at $264.68, they ranged from $263.54 and $265.76 throughout the day.
Sherwin-Williams Co. (NYSE: SHW) now has a market cap of 24.42B.
Sherwin-Williams Co. (NYSE: SHW) Average Daily Trading Volume
58,489 shares crossed the trading desk yesterday, below the norm, out of a total float 79,881,000. Investors often use swings in trading volume to pinpoint substantial volume growth or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
However, a single day of heavy buy side trading is not enough to assert a trend. So market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Sherwin-Williams Co. (NYSE: SHW) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Sherwin-Williams Co. (NYSE: SHW) have ranged from $234.96 – 312.48, and the stock now has a 50-day MA of $261.24 and 200-day MA of $282.13. Today’s last price is 15.04%% under the 52 week high of $312.48.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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