Prestige Brands Holdings Inc. (NYSE: PBH) shares slid back in value Thursday December 29 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks were little changed in early trade Thursday. The S&P 500 SPX, +0.04% rose 0.1% to 2,252, while the Dow DJIA, +0.04% advanced 16 points to 19,850. The Nasdaq Composite COMP, -0.04% was virtually flat at 5,439.
Analysts at Zacks Investment Research upgraded shares of Prestige Brands Holdings Inc. (NYSE: PBH) from Sell to Hold today. The company currently has a rating of Hold on the shares. The one-year price target of $60.60 is above the opening price of $51.91, causing a number of other analysts to issue statements on the stock in recent days. Looking back over the last 52 weeks, Prestige Brands Holdings Inc. stock has a high of $58.09. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of Prestige Brands Holdings Inc. (NYSE: PBH) opened at $51.91 on Tuesday trading between $51.85 and $52.13, and last traded at $51.90, which is a drop of $0.02 per share or -0.04% compared to the previous closing price.
Prestige Brands Holdings Inc. (NYSE: PBH) currently has a market cap of 2.75B.
Prestige Brands Holdings Inc. (NYSE: PBH) Average Daily Trading Volume
The stock’s average daily volume is 370,908 shares out of a total float 49,861,000 and some 9,843 shares traded hands yesterday, lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to pinpoint substantial volume growth or dissemination by institutional investors.
While an increase in trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Prestige Brands Holdings Inc. (NYSE: PBH) 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 traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Prestige Brands Holdings Inc. (NYSE: PBH) now has a 50-day MA of $48.93 and 200-day MA of $49.79. It has traded in a 52-week range between $43.63 – 58.09 and today’s last price is 10.66%% lower than the 52 week high of $58.09.
Earnings growth is a critical factor to consider when buying stocks and investors identify companies that have raised their earnings by at least 25% for the past 3 years.
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