21Vianet Group, Inc. (NASDAQ: VNET) shares rose 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, in early trading today the Dow Jones Industrial Average DJIA, +0.19% rose 40 points, or 0.2%, to 19,929 while the S&P 500 SPX, +0.31% added 5 points to 2,275, a rise of 0.2%. The Nasdaq Composite Index COMP, +0.53% climbed 19 points, or 0.3%, to 5,567.
Analysts at Zacks Investment Research downgraded shares of 21Vianet Group, Inc. (NASDAQ: VNET) from Hold to Sell in a research note to investors today. The company currently has a rating of Sell on the shares. A number of other analysts have spoken on the stock recently, and the company has earned a consensus one-year price target of $8.30, above the opening price of $7.08, a difference of 11.71 percent. 21Vianet Group, Inc. stock has a 52-week high of $21.12. Downgrades are more common when analysts consider that the future prospects for the security have diminished from the initial recommendation, usually caused by an important and integral change in the company’s operations, future vision or industry.
Yesterday 21Vianet Group, Inc. (NASDAQ: VNET) shares last traded at $7.09, which represents a jump of $0.02 compared to the previous closing price. Opening at $7.08, they ranged from $7.00 and $7.16 throughout the day.
21Vianet Group, Inc. (NASDAQ: VNET) now has a market cap of 806.01M.
21Vianet Group, Inc. (NASDAQ: VNET) Average Daily Trading Volume
107,579 shares crossed the trading desk yesterday, 77 percent below normal, out of a total float 65,737,000. 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.
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 just 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 researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
21Vianet Group, Inc. (NASDAQ: VNET) 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, 21Vianet Group, Inc. (NASDAQ: VNET) now has a 50-day MA of $7.49 and 200-day MA of $8.46. It has traded in a 52-week range between $6.77 – 21.12 and today’s last price is 66.43%% lower than the 52 week high of $21.12.
Earnings growth is a crucial factor to consider when buying stocks and investors seek companies that have increased their earnings at least 25% or more for 3 consecutive years.
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