NanoString Technologies, Inc. (NSTG) Stock Moves Down and Here’s Why

NanoString Technologies, Inc. (NASDAQ: NSTG) 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 NanoString Technologies, Inc. (NASDAQ: NSTG) from Buy to Hold in a research note to investors today. With a rating of Hold on the shares, the company has a 52-week high of $23.45. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and NanoString Technologies, Inc. has earned a consensus one-year price target of $26.00, higher than the opening price of $17.81, a difference of 14.75 percent. Important and fundamental changes in the company’s procedures, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the initial recommendation.

Yesterday NanoString Technologies, Inc. (NASDAQ: NSTG) shares last traded at $17.63, which represents a decrease of $0.25 over the previous closing price. Opening at $17.81, they varied from $17.55 and $17.85 throughout the day.

NanoString Technologies, Inc. (NASDAQ: NSTG) now has a market cap of 370.30M.

NanoString Technologies, Inc. (NASDAQ: NSTG) Average Daily Trading Volume

28,817 shares traded hands yesterday, 35 percent below the norm, out of a total float 12,960,000. 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 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

NanoString Technologies, Inc. (NASDAQ: NSTG) 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 successful trades.

With that in mind, NanoString Technologies, Inc. (NASDAQ: NSTG) now has a 50-day MA of $22.22 and 200-day MA of $18.41. It has traded in a 52-week range between $11.30 – 23.4500 and today’s last price is 24.82%% lower than the 52 week high of $23.45.

Earnings growth is an important factor to research when investing in stocks and investors seek companies that have grown their earnings at least 25% or more over 3 consecutive years.

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