AMAG Pharmaceuticals, Inc. (AMAG) shares fall following downgrade at Needham & Company LLC

AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG) 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.

Meanwhile in early trading, the Dow Jones Industrial Average DJIA, +0.31% rose 24 points, or 0.1%, to 19,883, while the S&P 500 index ESH7, +0.13% dipped less than 1 point to 2,268. The Nasdaq Composite COMP, +0.02% which reached its fourth-straight record close on Tuesday, rose 1 point to 5,553.

Shares of AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG) were downgraded by analysts at Needham & Company LLC in a note to their investors today. The company currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have commented on the company recently, and AMAG Pharmaceuticals, Inc. has earned a consensus one-year price target of $34.00, above the opening price of $23.00. AMAG Pharmaceuticals, Inc. stock has a 52-week high of $36.83. Downgrades are more common when analysts consider that the future prospects for the security have diminished from the initial recommendation, usually due to a material and major digression in the company’s operations, future direction or industry.

Yesterday AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG) shares last traded at $23.50, which represents an increase of $0.40 from the previous closing price. Opening at $23.00, they varied from $22.75 and $23.70 throughout the day.

AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG) now has a market cap of 803.91M.

AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG) Average Daily Trading Volume

238,575 shares crossed the trading desk yesterday, 78 percent below the norm, out of a total float 28,434,000. 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.

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.

Institutional investors such as these have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG) 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 investors to make those trends work in their favor and increase the number of winning trades.

Trades for AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG) have ranged from $17.92 – 36.83, and the stock now has a 50-day MA of $34.15 and 200-day MA of $27.42. Today’s last price is 36.18%% below the 52 week high of $36.83.

Earnings growth is a critical factor to research when buying stocks and investors seek companies that have raised their earnings by at least 25% over the past 3 years.

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