Artisan Partners Asset Management Inc. (APAM) stock falls after being downgraded at Goldman Sachs Group, Inc. (The)

Artisan Partners Asset Management Inc. (NYSE: APAM) shares fell on Wednesday Jan 4 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 opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.

The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.

Analysts at Goldman Sachs Group, Inc. (The) downgraded shares of Artisan Partners Asset Management Inc. (NYSE: APAM) from Neutral to Sell in a research note to investors today. The company currently has a rating of Sell on the stock. The one-year price target of $27.17 is lower than the opening price of $29.80, resulting a fair amount of other analysts to issue statements on the company recently. Looking back over the last year, Artisan Partners Asset Management Inc. stock has a high of $35.29. Important and fundamental changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts feel that the future prospects for the security have dropped from the original recommendation.

Artisan Partners Asset Management Inc. (NYSE: APAM) shares last traded at $29.65, which is a dip of $1.05 per share or -0.03 compared to the previous closing price. Opening at $29.80, they varied from $29.25 and $29.95 throughout the day.

Artisan Partners Asset Management Inc. (NYSE: APAM) currently has a market cap of 1.25B.

Artisan Partners Asset Management Inc. (NYSE: APAM) Average Daily Trading Volume

112,454 shares crossed the trading desk yesterday, below the norm, out of a total float 40,081,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

While increased 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 sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.

Artisan Partners Asset Management Inc. (NYSE: APAM) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

With that in mind, Artisan Partners Asset Management Inc. (NYSE: APAM) now has a 50-day MA of $30.00 and 200-day MA of $27.99. It has traded in a 52-week range between $23.65 – 35.29 and today’s last price is 0.16% lower than the 52 week high of $35.29.

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

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