Time Warner Inc. (TWX) shares fall following downgrade at Brean Capital

Time Warner Inc. (NYSE: TWX) shares rose on Thursday December 29 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded 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.

Shares of Time Warner Inc. (NYSE: TWX) were downgraded by analysts at Brean Capital in a note to their investors today. With a rating of Hold on the shares, the company has a 52-week high of $96.88. The one-year price target of $102.45 is higher than the opening price of $96.30, causing a number of other analysts to comment on the company in recent days. Downgrades are more common when analysts consider that the future prospects for the security have diminished from the original recommendation, often due to an important and integral change in the company’s operations, future direction or industry.

Time Warner Inc. (NYSE: TWX) shares last traded at $96.35, an increase of $0.13 or 0.14% compared to the previous closing price. Opening at $96.30, they varied from $96.23 and $96.44 throughout the day.

Time Warner Inc. (NYSE: TWX) now has a market cap of 74.30B.

Time Warner Inc. (NYSE: TWX) Average Daily Trading Volume

The stock’s average daily volume is 6,733,100 shares out of a total float 770,150,000 and some 97,267 shares crossed the trading desk yesterday, lower than the norm. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to pinpoint substantial volume accumulation or distribution by institutional investors.

However, one day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch 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 professional 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.

Time Warner Inc. (NYSE: TWX) 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.

Traders can make well planned trades when they follow the trading habits of professional investors.

Trades for Time Warner Inc. (NYSE: TWX) have ranged from $55.53 – 96.88, and the stock now has a 50-day MA of $92.92 and 200-day MA of $82.19. Today’s last price is 0.55%% lower than the 52 week high of $96.88.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over a 3 year period.

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