FelCor Lodging Trust Incorporated (NYSE: FCH) 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 FBR & Co downgraded shares of FelCor Lodging Trust Incorporated (NYSE: FCH) from Outperform to Market Perform in a research note to investors today. FBR & Co currently has a rating of Market Perform on the shares. The one-year price target of $7.33 is a decrease compared to the opening price of $7.84, that has caused a number of other analysts to issue statements on the stock in recent days. Looking back over the last year, FelCor Lodging Trust Incorporated stock has a high of $8.44. Considerable and major changes in the company’s procedures, future vision or industry can cause downgrades as the analysts consider that the future prospects for the security have diminished from the original recommendation.
FelCor Lodging Trust Incorporated (NYSE: FCH) shares last traded at $7.85, which is a dip of $0.30 per share or -0.04 compared to the previous closing price. Opening at $7.84, they ranged from $7.68 and $7.95 throughout the day.
FelCor Lodging Trust Incorporated (NYSE: FCH) now has a market cap of 1.08B.
FelCor Lodging Trust Incorporated (NYSE: FCH) Average Daily Trading Volume
242,679 shares crossed the trading desk yesterday, lower than the average, out of a total float 119,000,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to 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 validation to see them taking a postion in a stock you are researching.
FelCor Lodging Trust Incorporated (NYSE: FCH) 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 investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, FelCor Lodging Trust Incorporated (NYSE: FCH) now has a 50-day MA of $7.71 and 200-day MA of $6.77. It has traded in a 52-week range between $5.47 – 8.44 and today’s last price is 0.07% lower than the 52 week high of $8.44.
Earnings growth is an important factor to research when buying stocks and investors identify companies that have increased their earnings at least 25% or more over a 3 year period.
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