Spectrum Brands Holdings, Inc. (NYSE: SPB) 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 Bank of America Corporation downgraded shares of Spectrum Brands Holdings, Inc. (NYSE: SPB) from to Neutral in a research note to investors today. With a rating of Neutral on the stock, Spectrum Brands Holdings, Inc. has a 52-week high of $138.95. The one-year price target of $143.30 is above the opening price of $121.20, resulting a number of other analysts to comment on the stock recently. Downgrades are more common when analysts feel that the future prospects for the security have diminished from the initial recommendation, often due to an important and integral digression in the company’s procedures, future vision or industry.
Shares of Spectrum Brands Holdings, Inc. (NYSE: SPB) opened at $121.20 yesterday trading between $119.12 and $121.98, and last traded at $119.77, a drop of $3.43 over the previous closing price.
Spectrum Brands Holdings, Inc. (NYSE: SPB) now has a market cap of 7.12B.
Spectrum Brands Holdings, Inc. (NYSE: SPB) Average Daily Trading Volume
The stock’s average daily volume is 470,970 shares out of a total float 24,627,000 and some 95,334 shares traded hands yesterday, 9 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 is defined by 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 watching their interests is a good way to make sure you are buying the right stocks.
Spectrum Brands Holdings, Inc. (NYSE: SPB) 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, Spectrum Brands Holdings, Inc. (NYSE: SPB) now has a 50-day MA of $121.24 and 200-day MA of $126.92. It has traded in a 52-week range between $87.65 – 138.95 and today’s last price is 13.80%% lower than the 52 week high of $138.95.
Earnings growth is an important factor to look at when buying stocks and investors identify companies that have raised their earnings by at least 25% for the past 3 years.
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