The Goodyear Tire & Rubber Co. (NASDAQ: GT) shares rose on Tuesday Nov 29 with lower trade volume than normal after more analysts initiated coverage on the stock.
U.S. stocks on Tuesday morning traded near break-even levels, with the main benchmarks switching in and out of negative territory
The Dow Jones Industrial Average DJIA, -0.09% was flat at 19,102. Meanwhile, the Nasdaq Composite COMP, +0.00% traded 18 points, or 0.1%, at 5,362.
The S&P 500 index SPX, -0.04% was off by 0.1%, or 2 points, at 2,199, with five of the 11 main sectors trading lower.
Analysts at Jefferies Group 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. A number of other analysts have issued reports on the company recently, and the company has earned a consensus one-year price target of $34.33, higher than the opening price of $30.95, a difference of 11.11 percent. The Goodyear Tire & Rubber Co. stock has a 52-week high of $35.30. Price changes targets are not unheard of as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Shares of The Goodyear Tire & Rubber Co. (NASDAQ: GT) opened at $30.95 on Tuesday and has traded in a range between, $30.60 and $31.07, and last traded at $30.90, which represents a spike of $0.15 or 0.49% from the previous closing price.
The Goodyear Tire & Rubber Co. (NASDAQ: GT) currently has a market cap of 8.07B.
The Goodyear Tire & Rubber Co. (NASDAQ: GT) Average Daily Trading Volume
235,185 shares crossed the trading desk yesterday, below normal, out of a total float 260,313,000. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to pinpoint large volume accumulation or dissemination by institutional investors.
However, a single day of significant buy side trading is not enough to assert a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship just 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 researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re researching.
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.
By marking the activity of these professional investors and how they influence moving averages, traders are able to make make the best trades.
Trades for The Goodyear Tire & Rubber Co. (NASDAQ: GT) have ranged from $24.31 – 35.30, and the stock now has a 50-day MA of $30.29 and 200-day MA of $29.02. Today’s last price is 12.46%% lower than the 52 week high of $35.30.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% over 3 consecutive years.
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