Olin Corporation (OLN) Stock Moves Down and Here’s Why

Olin Corporation (NYSE: OLN) 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 Olin Corporation (NYSE: OLN) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Hold on the shares, Olin Corporation has a 52-week high of $27.98. As a means of comparison, a number of other analysts have spoken on the stock recently, and the company has secured a consensus one-year price target of $26.60, a decrease compared to the opening price of $26.90. Downgrades happen when analysts consider that the future prospects for the security have dropped from the initial recommendation, often because of a considerable and fundamental change in the company’s procedures, future outlook or industry.

Yesterday Olin Corporation (NYSE: OLN) shares last traded at $27.30, which represents a spike of $0.39 from the previous closing price. Opening at $26.90, they varied from $26.90 and $27.42 throughout the day.

Olin Corporation (NYSE: OLN) now has a market cap of 4.51B.

Olin Corporation (NYSE: OLN) Average Daily Trading Volume

120,863 shares traded hands yesterday, 77 percent below normal, out of a total float 148,550,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Olin Corporation (NYSE: OLN) 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 investors to make those trends work in their favor and increase the number of successful trades.

Trades for Olin Corporation (NYSE: OLN) have ranged from $12.29 – 27.98, and the stock now has a 50-day MA of $26.10 and 200-day MA of $22.88. Today’s last price is 2.43%% lower than the 52 week high of $27.98.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more for a 3 year period.

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