Rogers Communication, Inc. (NYSE: RCI) 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 RBC Capital Markets downgraded shares of Rogers Communication, Inc. (NYSE: RCI) from Outperform to Sector Perform in a research note to investors today. With a rating of Sector Perform on the stock, the company has a 52-week high of $45.50. The one-year price target of $42.72 is above the opening price of $38.95, that has caused a number of other analysts to report on the stock in recent days. Downgrades occur when analysts consider that the future prospects for the security have diminished from the original recommendation, often due to a considerable and major digression in the company’s procedures, future outlook or industry.
Shares of Rogers Communication, Inc. (NYSE: RCI) opened at $38.95 yesterday and traded in a range between, $38.81 and $39.13, and last traded at $38.91, a dip of $0.53 compared to the previous closing price.
Rogers Communication, Inc. (NYSE: RCI) currently has a market cap of 20.03B.
Rogers Communication, Inc. (NYSE: RCI) Average Daily Trading Volume
40,228 shares crossed the trading desk yesterday, 7 percent lower than the average, out of a total float 390,363,000. 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.
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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you’re considering.
Rogers Communication, Inc. (NYSE: RCI) 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.
Trades for Rogers Communication, Inc. (NYSE: RCI) have ranged from $32.50 – 45.50, and the stock now has a 50-day MA of $38.76 and 200-day MA of $41.06. Today’s last price is 14.48%% under the 52 week high of $45.50.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings at least 25% or more over a 3 year period.
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