Signet Jewelers Limited (NYSE: SIG) 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.
Shares of Signet Jewelers Limited (NYSE: SIG) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Hold on the stock, the company has a 52-week high of $125.74. The one-year price target of $108.57 is above the opening price of $84.13, causing a fair amount of other analysts to report on the stock in recent days. Downgrades happen when analysts believe that the future prospects for the security have weakened from the original recommendation, often caused by a considerable and major change in the company’s operations, future outlook or industry.
Shares of Signet Jewelers Limited (NYSE: SIG) opened at $84.13 yesterday trading between $83.85 and $84.74, and last traded at $84.54, a dip of $0.16 from the previous closing price.
Signet Jewelers Limited (NYSE: SIG) currently has a market cap of 5.88B.
Signet Jewelers Limited (NYSE: SIG) Average Daily Trading Volume
104,437 shares crossed the trading desk yesterday, 10 percent below the norm, out of a total float 57,479,000. lower than normal. Look for trading volume to pick up in the coming days as investors 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 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 that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you’re considering.
Signet Jewelers Limited (NYSE: SIG) 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 Signet Jewelers Limited (NYSE: SIG) have ranged from $72.65 – 125.74, and the stock now has a 50-day MA of $93.14 and 200-day MA of $86.15. Today’s last price is 32.77%% under the 52 week high of $125.74.
Earnings growth is a critical factor to look at when investing in stocks and investors watch for companies that have increased their earnings by at least 25% over a 3 year period.
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