Avon Products, Inc. (NYSE: AVP) shares fell in early trading yesterday 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 edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Shares of Avon Products, Inc. (NYSE: AVP) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Strong Sell on the stock, Avon Products, Inc. has a 52-week high of $6.96. The one-year price target of $6.23 is above the opening price of $5.44, resulting a number of other analysts to report on the stock in recent days. Downgrades happen when analysts believe that the future prospects for the security have dropped from the original recommendation, usually due to a material and fundamental digression in the company’s procedures, future direction or industry.
Yesterday Avon Products, Inc. (NYSE: AVP) shares last traded at $5.26, a dip of $0.25 from the previous closing price. Opening at $5.44, they fluctuated from $5.20 and $5.46 throughout the day.
Avon Products, Inc. (NYSE: AVP) now has a market cap of 2.30B.
Avon Products, Inc. (NYSE: AVP) Average Daily Trading Volume
The stock’s average daily volume is 5,677,560 shares out of a total float 435,683,000 and some 522,727 shares traded hands yesterday, 100 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Avon Products, Inc. (NYSE: AVP) 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 successful trades.
With that in mind, Avon Products, Inc. (NYSE: AVP) now has a 50-day MA of $5.40 and 200-day MA of $5.31. It has traded in a 52-week range between $2.21 – 6.960 and today’s last price is 24.50%% lower than the 52 week high of $6.96.
Earnings growth is a crucial factor to look at when buying stocks and investors seek companies that have grown their earnings at least 25% or more over 3 consecutive years.
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