Northwest Bancshares, Inc. (NASDAQ: NWBI) 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 Northwest Bancshares, Inc. (NASDAQ: NWBI) from Hold to Sell in a research note to investors today. The company currently has a rating of Sell on the shares. As a means of comparison, a number of other analysts have commented on the stock in recent days, and the company has secured a consensus one-year price target of $17.83, a decrease compared to the opening price of $17.88, a difference of 9.92 percent. Northwest Bancshares, Inc. stock has a 52-week high of $19.10. Downgrades happen when analysts consider that the future prospects for the security have dropped from the original recommendation, usually because of an important and integral digression in the company’s operations, future direction or industry.
Yesterday Northwest Bancshares, Inc. (NASDAQ: NWBI) shares last traded at $17.98, which is a spike of $0.22 from the previous closing price. Opening at $17.88, they fluctuated from $17.72 and $18.04 throughout the day.
Northwest Bancshares, Inc. (NASDAQ: NWBI) currently has a market cap of 1.82B.
Northwest Bancshares, Inc. (NASDAQ: NWBI) Average Daily Trading Volume
The stock’s average daily volume is 617,943 shares out of a total float 99,347,000 and some 84,331 shares crossed the trading desk yesterday, 76 percent below 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.
While increased trading for short periods will not mean much will not mean much, conversely, 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
Northwest Bancshares, Inc. (NASDAQ: NWBI) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for Northwest Bancshares, Inc. (NASDAQ: NWBI) have ranged from $11.77 – 19.10, and the stock now has a 50-day MA of $18.30 and 200-day MA of $16.09. Today’s last price is 5.86%% lower than the 52 week high of $19.10.
Earnings growth is a crucial factor to consider when buying stocks and investors identify companies that have increased their earnings at least 25% or more over 3 consecutive years.
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