Numerex Corp. (NASDAQ: NMRX) 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 First Analysis downgraded shares of Numerex Corp. (NASDAQ: NMRX) from Overweight to Equal Weight in a research note to investors today. With a rating of Equal Weight on the stock, Numerex Corp. has a 52-week high of $9.01. The one-year price target of $7.83 is higher than the opening price of $6.87, resulting a number of other analysts to report on the company recently. Downgrades occur when analysts consider that the future prospects for the security have diminished from the original recommendation, often because of a material and fundamental change in the company’s operations, future outlook or industry.
Shares of Numerex Corp. (NASDAQ: NMRX) opened at $6.87 yesterday trading between $6.29 and $6.87, and last traded at $6.65, a dip of $0.53 over the previous closing price.
Numerex Corp. (NASDAQ: NMRX) now has a market cap of 130.23M.
Numerex Corp. (NASDAQ: NMRX) Average Daily Trading Volume
The stock’s average daily volume is 27,108 shares out of a total float 10,912,000 and some 8,803 shares traded hands yesterday, 70 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.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional 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.
Numerex Corp. (NASDAQ: NMRX) 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 Numerex Corp. (NASDAQ: NMRX) have ranged from $5.17 – 9.01, and the stock now has a 50-day MA of $7.98 and 200-day MA of $7.69. Today’s last price is 26.19%% under the 52 week high of $9.01.
Earnings growth is an important factor to research when investing in stocks and investors identify companies that have raised their earnings by at least 25% for 3 consecutive years.
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