Iconix Brand Group, Inc. (ICON) shares fall following downgrade at Zacks Investment Research

Iconix Brand Group, Inc. (NASDAQ: ICON) 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.

Shares of Iconix Brand Group, Inc. (NASDAQ: ICON) were downgraded by analysts at Zacks Investment Research in a note to their investors today. The company currently has a rating of Strong Sell on the stock. The one-year price target of $11.00 is above the opening price of $10.21, that has caused a fair amount of other analysts to issue statements on the company recently. Looking back over the last year, Iconix Brand Group, Inc. stock has a high of $10.60. Material and integral changes in the company’s operations, future direction or industry can cause downgrades as the analysts feel that the future prospects for the security have diminished from the initial recommendation.

Shares of Iconix Brand Group, Inc. (NASDAQ: ICON) opened at $10.21 yesterday trading between $10.15 and $10.60, and last traded at $10.47, an increase of $0.32 from the previous closing price.

Iconix Brand Group, Inc. (NASDAQ: ICON) now has a market cap of 587.66M.

Iconix Brand Group, Inc. (NASDAQ: ICON) Average Daily Trading Volume

The stock’s average daily volume is 663,797 shares out of a total float 54,735,000 and some 264,977 shares crossed the trading desk yesterday, 35 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Iconix Brand Group, Inc. (NASDAQ: ICON) 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, Iconix Brand Group, Inc. (NASDAQ: ICON) now has a 50-day MA of $9.32 and 200-day MA of $8.21. It has traded in a 52-week range between $4.67 – 10.60 and today’s last price is 1.23%% lower than the 52 week high of $10.60.

Earnings growth is an important factor to consider when investing in stocks and investors watch for companies that have increased their earnings by at least 25% over 3 consecutive years.

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