DST Systems, Inc. (NYSE: DST) 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 DST Systems, Inc. (NYSE: DST) from Hold to Sell in a research note to investors today. With a rating of Sell on the stock, the company has a 52-week high of $128.66. The one-year price target of $121.60 is above the opening price of $111.18, that has caused a number of other analysts to issue statements on the stock recently. Downgrades happen when analysts believe that the future prospects for the security have diminished from the initial recommendation, often due to an important and integral change in the company’s operations, future vision or industry.
Shares of DST Systems, Inc. (NYSE: DST) opened at $111.18 yesterday and traded in a range between, $111.18 and $111.91, and last traded at $111.72, a jump of $0.91 compared to the previous closing price.
DST Systems, Inc. (NYSE: DST) currently has a market cap of 3.57B.
DST Systems, Inc. (NYSE: DST) Average Daily Trading Volume
3,451 shares crossed the trading desk yesterday, 7 percent below normal, out of a total float 31,659,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
DST Systems, Inc. (NYSE: DST) 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 traders to make those trends work in their favor and increase the number of successful trades.
Trades for DST Systems, Inc. (NYSE: DST) have ranged from $94.52 – 128.66, and the stock now has a 50-day MA of $107.43 and 200-day MA of $113.13. Today’s last price is 13.17%% below the 52 week high of $128.66.
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% for a 3 year period.
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