Analysts at Zacks Investment Research upgraded shares of Select Comfort Corp. (NASDAQ: SCSS) from Hold to Buy today. The company currently has a rating of Buy on the shares. A number of other analysts have spoken on the stock in recent days, and Select Comfort Corp. has earned a consensus one-year price target of $26.57, higher than the opening price of $24.76, a difference of 10.47 percent. Select Comfort Corp. stock has a 52-week high of $28.34. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
The Fed stood pat on interest rates on Wednesday, helping stocks to mostly higher levels but Chairwoman Janet Yellen indicated an interest rate hike is likely by year’s end
On Wednesday, the S&P 500 SPX, +1.09% ended 1.1% higher, while the Dow DJIA, +0.90% jumped by 0.9%, or 164 points, as each exchange finished in positive territory for a second consecutive day.
The tech-heavy Nasdaq Composite COMP, +1.03% tacked on 1% and scored a record closing high.
S&P 500 futures ESZ6, +0.36% were up 6.55 points, or 0.3%, to 2,162.75 early Thursday, while Dow Jones Industrial Average futures YMZ6, +0.37% rose 58 points, or 0.3%, to 18,276. Nasdaq-100 futures NQZ6, +0.39% gained 16.25 points, or 0.3%, to 4,866.25.
Yesterday Select Comfort Corp. (NASDAQ: SCSS) shares last traded at $25.37, a jump of $0.59 from the previous closing price. Opening at $24.76, they varied from $24.73 and $25.41 throughout the day.
Select Comfort Corp. (NASDAQ: SCSS) now has a market cap of 1.17B.
The stock’s average daily volume is 535,612 shares out of a total float 45,037,000 and some 389,465 shares crossed the trading desk yesterday, lower than the average. Investors often use swings in trading volume to determine substantial volume growth or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
By following the activity of these professional investors—and the moving averages they affect—it allows for traders to make more impactful choices on trades.
Trades for Select Comfort Corp. (NASDAQ: SCSS) have ranged from $14.28 – 28.34, and the stock now has a 50-day MA of $25.91 and 200-day MA of $22.62. Today’s last price is 0.10% lower than the 52 week high of $28.34.
Earnings growth is a crucial factor to consider when investing in stocks and investors look for companies that have grown their earnings at least 25% or more over 3 consecutive years.
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