Whole Foods Market Inc. (NASDAQ: WFM) shares traded mostly flat on Monday Dec 5 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
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.
Shares of Whole Foods Market Inc. (NASDAQ: WFM) were downgraded by analysts at Vetr Inc. in a note to their investors today. With a rating of Sell on the stock, the company has a 52-week high of $35.58. The one-year price target of $29.89 is less than the opening price of $30.78, resulting a number of other analysts to comment on the stock in recent days. Downgrades happen when analysts consider that the future prospects for the security have dropped from the original recommendation, usually due to a considerable and fundamental change in the company’s operations, future vision or industry.
Shares of Whole Foods Market Inc. (NASDAQ: WFM) opened at $30.78 on Tuesday trading between $30.62 and $30.81, and last traded at $30.76.
Whole Foods Market Inc. (NASDAQ: WFM) currently has a market cap of 9.79B.
Whole Foods Market Inc. (NASDAQ: WFM) Average Daily Trading Volume
The stock’s average daily volume is 5,443,170 shares out of a total float 315,492,000 and some 291,574 shares traded hands yesterday, lower than the average. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to determine substantial volume growth or distribution by institutional investors.
As with all potential breakouts, investors watch 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain 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.
Whole Foods Market Inc. (NASDAQ: WFM) 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 the moving averages they affect—it allows for traders to make more effective choices on trades.
With that in mind, Whole Foods Market Inc. (NASDAQ: WFM) now has a 50-day MA of $29.45 and 200-day MA of $30.67. It has traded in a 52-week range between $27.67 – 35.58 and today’s last price is 13.55%% lower than the 52 week high of $35.58.
Earnings growth is a crucial factor to look at when buying stocks and investors seek companies that have grown their earnings at least 25% or more over a 3 year period.
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