Quintiles Transitional Holdings Inc. (Q) Shares Slip, Investors Watching Closely, Here is Why

Quintiles Transitional Holdings Inc. (NYSE: Q) 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 Quintiles Transitional Holdings Inc. (NYSE: Q) from Buy to Hold in a research note to investors today. Zacks Investment Research currently has a rating of Hold on the stock. The one-year price target of $83.56 is higher than the opening price of $76.91, causing a number of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Quintiles Transitional Holdings Inc. stock has a high of $81.45. Important and fundamental changes in the company’s actions, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the initial recommendation.

Shares of Quintiles Transitional Holdings Inc. (NYSE: Q) opened at $76.91 yesterday trading between $76.43 and $77.02, and last traded at $76.64, which represents a drop of $0.34 compared to the previous closing price.

Quintiles Transitional Holdings Inc. (NYSE: Q) currently has a market cap of 18.87B.

Quintiles Transitional Holdings Inc. (NYSE: Q) Average Daily Trading Volume

70,023 shares traded hands yesterday, 36 percent lower than the norm, out of a total float 182,159,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.

Institutional sponsorship simply 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 that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Quintiles Transitional Holdings Inc. (NYSE: Q) 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, Quintiles Transitional Holdings Inc. (NYSE: Q) now has a 50-day MA of $77.38 and 200-day MA of $75.88. It has traded in a 52-week range between $55.01 – 81.45 and today’s last price is 5.91%% lower than the 52 week high of $81.45.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings by at least 25% over 3 consecutive years.

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