Sunstone Hotel Investors, Inc. (NYSE: SHO) 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 Sunstone Hotel Investors, Inc. (NYSE: SHO) were downgraded by analysts at Robert W. Baird in a note to their investors today. With a rating of Neutral on the stock, the company has a 52-week high of $16.05. As a means of comparison, a number of other analysts have spoken on the stock recently, and the company has earned a consensus one-year price target of $14.77, less than the opening price of $15.02, a difference of 9.87 percent. Downgrades happen when analysts feel that the future prospects for the security have diminished from the original recommendation, often due to a material and major change in the company’s operations, future outlook or industry.
Shares of Sunstone Hotel Investors, Inc. (NYSE: SHO) opened at $15.02 yesterday and traded in a range between, $14.84 and $15.02, and last traded at $14.96, which is a jump of $0.02 over the previous closing price.
Sunstone Hotel Investors, Inc. (NYSE: SHO) now has a market cap of 3.24B.
Sunstone Hotel Investors, Inc. (NYSE: SHO) Average Daily Trading Volume
184,104 shares crossed the trading desk yesterday, 96 percent below the average, out of a total float 214,757,000. 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 short periods will not mean much will not mean much, however, 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.
Professional investors such as these retain teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Sunstone Hotel Investors, Inc. (NYSE: SHO) 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 Sunstone Hotel Investors, Inc. (NYSE: SHO) have ranged from $9.53 – 16.0500, and the stock now has a 50-day MA of $15.20 and 200-day MA of $13.54. Today’s last price is 6.78%% under the 52 week high of $16.05.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% for the past 3 years.
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