Macerich Company (The) (MAC) Shares Slip, Investors Watching Closely, Here is Why

Macerich Company (The) (NYSE: MAC) 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 Zacks Investment Research downgraded shares of Macerich Company (The) (NYSE: MAC) from Hold to Sell in a research note to investors today. Zacks Investment Research currently has a rating of Sell on the stock. The one-year price target of $78.79 is above the opening price of $69.04, that has caused a number of other analysts to comment on the company in recent days. Looking back over the last year, Macerich Company (The) stock has a high of $94.51. Downgrades occur when analysts consider that the future prospects for the security have weakened from the initial recommendation, often because of a considerable and fundamental change in the company’s operations, future outlook or industry.

Shares of Macerich Company (The) (NYSE: MAC) opened at $69.04 yesterday trading between $68.72 and $69.12, and last traded at $68.85, which is a drop of $0.29 from the previous closing price.

Macerich Company (The) (NYSE: MAC) now has a market cap of 9.90B.

Macerich Company (The) (NYSE: MAC) Average Daily Trading Volume

The stock’s average daily volume is 870,813 shares out of a total float 142,901,000 and some 29,569 shares crossed the trading desk yesterday, 49 percent below 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.

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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain substantial teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you’re considering.

Macerich Company (The) (NYSE: MAC) 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, Macerich Company (The) (NYSE: MAC) now has a 50-day MA of $69.75 and 200-day MA of $77.83. It has traded in a 52-week range between $66.00 – 94.51 and today’s last price is 27.15%% lower than the 52 week high of $94.51.

Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have grown their earnings by at least 25% over a 3 year period.

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