Axcelis Technologies, Inc. (ACLS) Stock Moves Down and Here’s Why

Axcelis Technologies, Inc. (NASDAQ: ACLS) 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, 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.

Shares of Axcelis Technologies, Inc. (NASDAQ: ACLS) were downgraded by analysts at Stifel Nicolaus in a note to their investors today. The company currently has a rating of Hold on the stock. A number of other analysts have spoken on the stock in recent days, and Axcelis Technologies, Inc. has secured a consensus one-year price target of $17.80, above the opening price of $15.55, a difference of 11.30 percent. Axcelis Technologies, Inc. stock has a 52-week high of $16.55. Downgrades happen when analysts believe that the future prospects for the security have dropped from the original recommendation, often because of an important and major change in the company’s actions, future outlook or industry.

Shares of Axcelis Technologies, Inc. (NASDAQ: ACLS) opened at $15.55 yesterday trading between $15.30 and $16.15, and last traded at $15.75, which is a decrease of $0.30 over the previous closing price.

Axcelis Technologies, Inc. (NASDAQ: ACLS) currently has a market cap of 462.55M.

Axcelis Technologies, Inc. (NASDAQ: ACLS) Average Daily Trading Volume

The stock’s average daily volume is 117,324 shares out of a total float 25,824,000 and some 52,345 shares crossed the trading desk yesterday, 70 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

While increased trading for one day will not mean much, however, 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 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, so it is good corroboration to see them buying a stock you’re considering.

Axcelis Technologies, Inc. (NASDAQ: ACLS) 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 Axcelis Technologies, Inc. (NASDAQ: ACLS) have ranged from $7.16 – 16.55, and the stock now has a 50-day MA of $13.87 and 200-day MA of $12.54. Today’s last price is 4.83%% under the 52 week high of $16.55.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% over a 3 year period.

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