Tootsie Roll Industries TR Stock Analysis

Tootsie Roll Industries stock trades under the ticker TR & has shown recent bullishness that traders & investors should research further into.

TR stock closed at $44.35/share on 3/14/2023.

Tootsie Roll Industries TR Stock’s Technical Performance Broken Down

Tootsie Roll Industries TR Stock 's Technical Performance Over The Past Year
Tootsie Roll Industries TR Stock ‘s Technical Performance Over The Past Year

TR Stock Price: $44.35

10 Day Moving Average: $42.59

50 Day Moving Average: $43.19

200 Day Moving Average: $37.76

RSI: 60.15

MACD: -0.096

Yesterday, TR stock completed a bullish MACD crossover, gaining 3.48% on the day’s session.

Their RSI is on the overbought side of neutral & recent trading volumes have been about average compared to the year prior.

After spending much of March so far consolidating, they look primed for near-term weakness, which will provide a better entry point for patient investors & traders.

TR stock has support at the $43.19 (50 day moving average), $42.59 (10 day moving average) & $41.56/share price level, as they try to break out & above their $44.86, $44.98 & $45.24/share resistance levels.

Tootsie Roll Industries TR Stock As A Long-Term Investment

Long-term oriented investors will like TR stock’s 39.39 P/E (ttm), but will find their 3.78 P/B (mrq) to be a bit too rich.

They recently reported 13% Quarterly Revenue Growth Y-o-Y, with 26.5% Quarterly Earnings Growth Y-o-Y.

Their balance sheet looks appealing, with $149.4M of Total Cash (mrq) & $13.29M of Total Debt (mrq).

TR stock offers a modest 0.81% dividend, which appears to be sustainable in the long-run, as their payout ratio is 24.55%.

31.56% of TR stock’s outstanding share float is owned by institutional investors.

Tootsie Roll Industries TR Stock As A Short-Term Trade Using Options

Traders with shorter time horizons can trade options to protect their portfolios from volatility, while profiting from price movements in TR stock.

I am looking at the contracts with the 4/21 expiration date.

The $40 calls are in-the-money, as are the $50 puts.

As a smaller cap stock, there should become more liquidity for this expiration date after the 3/17 contracts expire on Friday.

Tying It All Together

TR stock has many interesting attributes that traders & investors should find appealing.

Investors will like their balance sheet, as well as their modest, but sustainable dividend.

Traders will like their recent technical performance, but may be disappointed by how illiquid their options are.

All-in-all, it is worth taking a closer look into TR stock to see how it fits into your portfolio strategy.