GATX Co. (GATX) shares fall following downgrade at Stifel Nicolaus

GATX Co. (NASDAQ: GATX) 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, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.

Analysts at Stifel Nicolaus downgraded shares of GATX Co. (NASDAQ: GATX) from Hold to Sell in a research note to investors today. The company currently has a rating of Sell on the stock. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and GATX Co. has earned a consensus one-year price target of $51.83, lower than the opening price of $57.83, a difference of 9.16 percent. GATX Co. stock has a 52-week high of $64.46. Downgrades occur when analysts feel that the future prospects for the security have dropped from the original recommendation, usually because of a material and integral change in the company’s procedures, future vision or industry.

Yesterday GATX Co. (NASDAQ: GATX) shares last traded at $56.60, a decrease of $2.74 compared to the previous closing price. Opening at $57.83, they ranged from $56.47 and $57.87 throughout the day.

GATX Co. (NASDAQ: GATX) now has a market cap of 2.26B.

GATX Co. (NASDAQ: GATX) Average Daily Trading Volume

The stock’s average daily volume is 450,344 shares out of a total float 39,394,000 and some 214,818 shares crossed the trading desk yesterday, 60 percent lower than normal. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

GATX Co. (NASDAQ: GATX) 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, GATX Co. (NASDAQ: GATX) now has a 50-day MA of $59.90 and 200-day MA of $48.41. It has traded in a 52-week range between $33.53 – 64.46 and today’s last price is 12.19%% lower than the 52 week high of $64.46.

Indeed, earnings growth is among the most important 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 3 consecutive years.

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