Nordstrom, Inc. (NYSE: JWN) 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 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 Nordstrom, Inc. (NYSE: JWN) were downgraded by analysts at Vetr Inc. in a note to their investors today. With a rating of Buy on the stock, Nordstrom, Inc. has a 52-week high of $62.82. As a means of comparison, a number of other analysts have commented on the stock in recent days, and Nordstrom, Inc. has secured a consensus one-year price target of $53.15, above the opening price of $45.83, a difference of 11.75 percent. Downgrades occur when analysts consider that the future prospects for the security have diminished from the original recommendation, usually due to a considerable and major change in the company’s actions, future direction or industry.
Yesterday Nordstrom, Inc. (NYSE: JWN) shares last traded at $45.22, which represents a dip of $0.45 compared to the previous closing price. Opening at $45.83, they fluctuated from $45.12 and $45.92 throughout the day.
Nordstrom, Inc. (NYSE: JWN) now has a market cap of 7.84B.
Nordstrom, Inc. (NYSE: JWN) Average Daily Trading Volume
298,883 shares crossed the trading desk yesterday, 116 percent lower than the norm, out of a total float 116,686,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to 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 corroboration to see them taking a postion in a stock you’re considering.
Nordstrom, Inc. (NYSE: JWN) 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.
With that in mind, Nordstrom, Inc. (NYSE: JWN) now has a 50-day MA of $53.16 and 200-day MA of $50.06. It has traded in a 52-week range between $35.01 – 62.82 and today’s last price is 28.02%% lower than the 52 week high of $62.82.
Earnings growth is a crucial factor to research when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.
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