FactSet Research Systems Inc. (NYSE: FDS) 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.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
Analysts at Barclays PLC downgraded shares of FactSet Research Systems Inc. (NYSE: FDS) from Equal Weight to Underweight in a research note to investors today. With a rating of Underweight on the shares, the company has a 52-week high of $183.17. As a means of comparison, a number of other analysts have issued reports on the stock recently, and FactSet Research Systems Inc. has secured a consensus one-year price target of $163.08, a decrease compared to the opening price of $166.99, a difference of 9.63 percent. considerable and major digressions in the company’s operations, future outlook or industry can cause downgrades as the analysts feel that the future prospects for the security have weakened from the original recommendation.
Shares of FactSet Research Systems Inc. (NYSE: FDS) opened at $166.99 yesterday trading between $166.35 and $169.44, and last traded at $169.42, which represents a dip of $0.38 over the previous closing price.
FactSet Research Systems Inc. (NYSE: FDS) currently has a market cap of 6.73B.
FactSet Research Systems Inc. (NYSE: FDS) Average Daily Trading Volume
44,690 shares traded hands yesterday, 41 percent below normal, out of a total float 38,843,000. 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.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
FactSet Research Systems Inc. (NYSE: FDS) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for FactSet Research Systems Inc. (NYSE: FDS) have ranged from $135.95 – 183.17, and the stock now has a 50-day MA of $163.95 and 200-day MA of $165.69. Today’s last price is 7.51%% lower than the 52 week high of $183.17.
Earnings growth is a crucial factor to look at when buying stocks and investors watch for companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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