Intercontinental Hotels Group (NYSE: IHG) shares rose 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 Zacks Investment Research downgraded shares of Intercontinental Hotels Group (NYSE: IHG) from Hold to Sell in a research note to investors today. With a rating of Sell on the stock, Intercontinental Hotels Group has a 52-week high of $50.53. As a means of comparison, a number of other analysts have spoken on the company recently, and Intercontinental Hotels Group has earned a consensus one-year price target of $43.60, less than the opening price of $45.81. Downgrades occur when analysts consider that the future prospects for the security have weakened from the original recommendation, often due to an important and fundamental change in the company’s operations, future vision or industry.
Yesterday Intercontinental Hotels Group (NYSE: IHG) shares last traded at $45.81, which represents a spike of $0.79 from the previous closing price. Opening at $45.81, they ranged from $45.65 and $45.81 throughout the day.
Intercontinental Hotels Group (NYSE: IHG) currently has a market cap of 10.44B.
Intercontinental Hotels Group (NYSE: IHG) Average Daily Trading Volume
The stock’s average daily volume is 230,113 shares out of a total float 193,008,000 and some 44,627 shares traded hands yesterday, 101 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Intercontinental Hotels Group (NYSE: IHG) 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 winning trades.
With that in mind, Intercontinental Hotels Group (NYSE: IHG) now has a 50-day MA of $43.07 and 200-day MA of $41.34. It has traded in a 52-week range between $34.63 – 50.53 and today’s last price is 9.34%% lower than the 52 week high of $50.53.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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