SodaStream International Ltd. (NASDAQ: SODA) 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 SodaStream International Ltd. (NASDAQ: SODA) from Buy to Hold in a research note to investors today. With a rating of Hold on the stock, SodaStream International Ltd. has a 52-week high of $41.33. The one-year price target of $35.20 is a decrease compared to the opening price of $41.07, resulting a number of other analysts to report on the company in recent days. Downgrades occur when analysts feel that the future prospects for the security have diminished from the original recommendation, usually caused by a material and major digression in the company’s procedures, future outlook or industry.
Yesterday SodaStream International Ltd. (NASDAQ: SODA) shares last traded at $40.46, which is a dip of $0.71 over the previous closing price. Opening at $41.07, they ranged from $40.38 and $41.20 throughout the day.
SodaStream International Ltd. (NASDAQ: SODA) currently has a market cap of 857.63M.
SodaStream International Ltd. (NASDAQ: SODA) Average Daily Trading Volume
The stock’s average daily volume is 324,370 shares out of a total float 18,457,000 and some 56,414 shares traded hands yesterday, 80 percent lower than normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases 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.
Professional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
SodaStream International Ltd. (NASDAQ: SODA) 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, SodaStream International Ltd. (NASDAQ: SODA) now has a 50-day MA of $38.43 and 200-day MA of $29.06. It has traded in a 52-week range between $11.66 – 41.33 and today’s last price is 2.11%% lower than the 52 week high of $41.33.
Earnings growth is a critical factor to research when investing in stocks and investors look for companies that have increased their earnings at least 25% or more for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.