Chico’s FAS Inc. (NYSE: CHS) shares rose in value Monday Nov 14 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close. The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Wolfe Research upgraded shares of Chico’s FAS Inc. (NYSE: CHS) from Peer Perform to Outperform today. With a rating of Outperform on the stock, Chico’s FAS Inc. has a 52-week high of $15.07. The one-year price target of $13.47 is lower than the opening price of $14.00, that has caused a number of other analysts to issue statements on the stock in recent days. Typically, after analysts issue an upgrade report on a stock, they will later issue periodic revisions, such as a price target change.
Shares of Chico’s FAS Inc. (NYSE: CHS) opened at $14.00 on Monday and traded in a range between, $13.99 and $15.07, and last traded at $14.79, which is a jump of $1.09 or 7.96% compared to the previous closing price.
Chico’s FAS Inc. (NYSE: CHS) now has a market cap of 1.91B.
Chico’s FAS Inc.Average Daily Trading Volume
The stock’s average daily volume is 2,103,960 shares out of a total float 117,126,000 and some 5,807,754 shares crossed the trading desk yesterday, higher than the average. Heavy volume aggregation by institutional investors may be on the horizon as the combination of large expansions in trading volume and price appreciation can be determining factors.
However, just a day of high volume buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Chico’s FAS Inc. 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, Chico’s FAS Inc. (NYSE: CHS) now has a 50-day MA of $12.07 and 200-day MA of $11.71. It has traded in a 52-week range between $9.61 – 15.07 and today’s last price is 1.86%% lower than the 52 week high of $15.07.
Earnings growth is an important factor to consider when buying stocks and investors look for companies that have raised their earnings at least 25% or more over the past 3 years.
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