Surgical Care Affiliates, Inc. (NASDAQ: SCAI) 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 Surgical Care Affiliates, Inc. (NASDAQ: SCAI) from Hold to Strong Sell in a research note to investors today. With a rating of Strong Sell on the shares, Surgical Care Affiliates, Inc. has a 52-week high of $56.80. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has earned a consensus one-year price target of $50.50, a decrease compared to the opening price of $56.66. Important and integral changes in the company’s procedures, future ision or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the original recommendation.
Shares of Surgical Care Affiliates, Inc. (NASDAQ: SCAI) opened at $56.66 yesterday and traded in a range between, $56.56 and $56.80, and last traded at $56.60, a decrease of $0.15 over the previous closing price.
Surgical Care Affiliates, Inc. (NASDAQ: SCAI) now has a market cap of 2.29B.
Surgical Care Affiliates, Inc. (NASDAQ: SCAI) Average Daily Trading Volume
228,326 shares traded hands yesterday, 38 percent lower than the average, out of a total float 28,002,000. 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 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 researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
Surgical Care Affiliates, Inc. (NASDAQ: SCAI) 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 winning trades.
Trades for Surgical Care Affiliates, Inc. (NASDAQ: SCAI) have ranged from $37.07 – 56.80, and the stock now has a 50-day MA of $45.08 and 200-day MA of $45.45. Today’s last price is 0.35%% lower than the 52 week high of $56.80.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% for the past 3 years.
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