Starbucks Corp. (NASDAQ: SBUX) shares rose on Monday Nov 21 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, stocks were set to open higher this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Analysts at Buckingham Research initiated coverage on Starbucks Corp. (NASDAQ: SBUX) stock, starting the company at Neutral. With a rating of Neutral on the stock, the company has a 52-week high of $63.19. A number of other analysts have issued reports on the company in recent days, and Starbucks Corp. has earned a consensus one-year price target of $64.54, higher than the opening price of $55.51. Changes in price targets are not uncommon as analysts and brokerage firms will publish periodic updates after initiating coverage,.
Shares of Starbucks Corp. (NASDAQ: SBUX) opened at $55.51 on Monday trading between $55.51 and $55.97, and last traded at $55.93, which is a spike of $0.16 or 0.29% over the previous closing price.
Starbucks Corp. (NASDAQ: SBUX) currently has a market cap of 81.69B.
Starbucks Corp. (NASDAQ: SBUX) Average Daily Trading Volume
The stock’s average daily volume is 9,122,740 shares out of a total float 1,422,045,000 and some 1,085,741 shares crossed the trading desk yesterday, below the norm. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify large volume growth or distribution by institutional investors.
However, a single day of high volume buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator 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 retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
Trades for Starbucks Corp. (NASDAQ: SBUX) have ranged from $50.84 – 63.19, and the stock now has a 50-day MA of $53.59 and 200-day MA of $55.22. Today’s last price is 11.49%% below the 52 week high of $63.19.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have increased their earnings at least 25% or more over the past 3 years.
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