Starbucks Corp. (NASDAQ: SBUX) shares fell back in value Tuesday Dec 6 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. 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%
Analysts at Edward Jones upgraded shares of Starbucks Corp. (NASDAQ: SBUX) from Hold to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $64.00 is above the opening price of $57.66, resulting a number of other analysts to comment on the stock recently. Looking back over the last 52 weeks, Starbucks Corp. stock has a high of $62.54. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of Starbucks Corp. (NASDAQ: SBUX) opened at $57.66 on Tuesday and has traded in a range between, $57.28 and $57.70, and last traded at $57.40, a dip of $0.10 per share or -0.18% over the previous closing price.
Starbucks Corp. (NASDAQ: SBUX) currently has a market cap of 83.54B.
Starbucks Corp. (NASDAQ: SBUX) Average Daily Trading Volume
719,683 shares traded hands yesterday, below the average, out of a total float 1,416,890,000. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to pinpoint large volume accumulation or dissemination by institutional investors.
While higher trading for one day 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 indicator 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 researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Starbucks Corp. (NASDAQ: SBUX) 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.
With that in mind, Starbucks Corp. (NASDAQ: SBUX) now has a 50-day MA of $54.85 and 200-day MA of $55.32. It has traded in a 52-week range between $50.84 – 62.5390 and today’s last price is 8.22%% lower than the 52 week high of $62.54.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings by at least 25% over the past 3 years.
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