The Goodyear Tire & Rubber Co. (NASDAQ: GT) shares rose on Tuesday Nov 22 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.
The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.
Analysts at Berenberg Bank initiated coverage on The Goodyear Tire & Rubber Co. (NASDAQ: GT) stock, starting the company at Buy. The company currently has a rating of Buy on the shares. The one-year price target of $33.67 is higher than the opening price of $30.31, resulting a fair amount of other analysts to issue statements on the stock recently. Looking back over the last year, The Goodyear Tire & Rubber Co. stock has a high of $35.30. Changes in price targets are not unheard of as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
The Goodyear Tire & Rubber Co. (NASDAQ: GT) shares last traded at $30.10, which is a jump of $0.18 or 0.59% from the previous closing price. Opening at $30.31, they fluctuated from $29.79 and $30.31 throughout the day.
The Goodyear Tire & Rubber Co. (NASDAQ: GT) now has a market cap of 7.86B.
The Goodyear Tire & Rubber Co. (NASDAQ: GT) Average Daily Trading Volume
The stock’s average daily volume is 3,424,690 shares out of a total float 260,316,000 and some 369,870 shares crossed the trading desk yesterday, lower than the average. Trading volume is likely to increase in the next few days as momentum traders often use swings in trading volume to identify large volume aggregation or circulation by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you’re considering.
The Goodyear Tire & Rubber Co. (NASDAQ: GT) 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 educated trades when they track the trading habits of professional investors.
With that in mind, The Goodyear Tire & Rubber Co. (NASDAQ: GT) now has a 50-day MA of $30.55 and 200-day MA of $28.94. It has traded in a 52-week range between $24.31 – 35.300 and today’s last price is 14.75%% lower than the 52 week high of $35.30.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more over the past 3 years.
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