Axis Capital Holdings Limited (NYSE: AXS) 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%.
Analysts at Wells Fargo & Company downgraded shares of Axis Capital Holdings Limited (NYSE: AXS) from to Underperform in a research note to investors today. The company currently has a rating of Underperform on the shares. The one-year price target of $60.80 is less than the opening price of $65.17, causing a fair amount of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Axis Capital Holdings Limited stock has a high of $66.23. Downgrades happen when analysts feel that the future prospects for the security have weakened from the initial recommendation, often because of a material and major digression in the company’s procedures, future outlook or industry.
Shares of Axis Capital Holdings Limited (NYSE: AXS) opened at $65.17 yesterday trading between $64.65 and $65.42, and last traded at $65.23, which is a decrease of $0.72 over the previous closing price.
Axis Capital Holdings Limited (NYSE: AXS) now has a market cap of 5.77B.
Axis Capital Holdings Limited (NYSE: AXS) Average Daily Trading Volume
The stock’s average daily volume is 487,368 shares out of a total float 86,532,000 and some 74,731 shares crossed the trading desk yesterday, 70 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders 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 instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are considering.
Axis Capital Holdings Limited (NYSE: AXS) 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, Axis Capital Holdings Limited (NYSE: AXS) now has a 50-day MA of $63.72 and 200-day MA of $57.63. It has traded in a 52-week range between $51.01 – 66.23 and today’s last price is 1.51%% lower than the 52 week high of $66.23.
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 at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.