TAL Education Group (NYSE: TAL) 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 TAL Education Group (NYSE: TAL) from Strong-Buy to Hold in a research note to investors today. With a rating of Hold on the stock, the company has a 52-week high of $83.68. The one-year price target of $89.66 is higher than the opening price of $75.07, resulting a fair amount of other analysts to report on the company in recent days. considerable and fundamental changes in the company’s actions, future ision or industry can cause downgrades as the analysts feel that the future prospects for the security have weakened from the original recommendation.
Shares of TAL Education Group (NYSE: TAL) opened at $75.07 yesterday trading between $74.84 and $75.38, and last traded at $74.98, a decrease of $0.50 from the previous closing price.
TAL Education Group (NYSE: TAL) currently has a market cap of 6.08B.
TAL Education Group (NYSE: TAL) Average Daily Trading Volume
The stock’s average daily volume is 475,878 shares out of a total float 45,229,000 and some 12,893 shares traded hands yesterday, 101 percent below normal. 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.
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 is defined by 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. So watching their interests is a good way to ensure you are buying the right stocks.
TAL Education Group (NYSE: TAL) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for TAL Education Group (NYSE: TAL) have ranged from $41.34 – 83.68, and the stock now has a 50-day MA of $72.48 and 200-day MA of $68.38. Today’s last price is 10.40%% under the 52 week high of $83.68.
Earnings growth is a crucial factor to research when investing in stocks and investors seek companies that have grown their earnings by at least 25% over the past 3 years.
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