United Insurance Holdings Corp. (NASDAQ: UIHC) 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 United Insurance Holdings Corp. (NASDAQ: UIHC) from Hold to Sell in a research note to investors today. Zacks Investment Research currently has a rating of Sell on the stock. The one-year price target of $17.00 is above the opening price of $15.34, that has caused a number of other analysts to comment on the company recently. Looking back over the last year, United Insurance Holdings Corp. stock has a high of $20.04. Downgrades occur when analysts believe that the future prospects for the security have dropped from the initial recommendation, often because of a material and fundamental change in the company’s operations, future vision or industry.
Yesterday United Insurance Holdings Corp. (NASDAQ: UIHC) shares last traded at $15.50, which represents a jump of $0.10 over the previous closing price. Opening at $15.34, they varied from $15.34 and $15.60 throughout the day.
United Insurance Holdings Corp. (NASDAQ: UIHC) currently has a market cap of 332.81M.
United Insurance Holdings Corp. (NASDAQ: UIHC) Average Daily Trading Volume
The stock’s average daily volume is 144,619 shares out of a total float 16,822,000 and some 2,781 shares traded hands yesterday, 75 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
United Insurance Holdings Corp. (NASDAQ: UIHC) 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, United Insurance Holdings Corp. (NASDAQ: UIHC) now has a 50-day MA of $14.84 and 200-day MA of $15.20. It has traded in a 52-week range between $9.52 – 20.0400 and today’s last price is 22.67%% lower than the 52 week high of $20.04.
Earnings growth is an important factor to look at when investing in stocks and investors seek companies that have increased their earnings at least 25% or more for the past 3 years.
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