Legg Mason, Inc. (NYSE: LM) shares slid back in value on Tuesday January 17 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade, the Dow Jones Industrial Average was 47 points lower, or 0.24% to 19838, the S&P 500 fell 7 points, or 0.29% to 2267, while the Nasdaq was down 19 points, or 0.35% to 5554.
Analysts at Zacks Investment Research upgraded shares of Legg Mason, Inc. (NYSE: LM) from Strong Sell to Hold today. The company currently has a rating of Hold on the stock. The one-year price target of $36.44 is above the opening price of $32.10, that has caused a fair amount of other analysts to comment on the stock in recent days. Looking back over the last 52 weeks, Legg Mason, Inc. stock has a high of $35.83. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Legg Mason, Inc. (NYSE: LM) shares last traded at $31.95, which represents a decrease of $0.30 from the previous closing price. Opening at $32.10, they fluctuated from $31.71 and $32.10 throughout the day.
Legg Mason, Inc. (NYSE: LM) currently has a market cap of 3.23B.
Legg Mason, Inc. (NYSE: LM) Average Daily Trading Volume
103,661 shares traded hands yesterday, 95 percent below the norm, out of a total float 90,081,000. 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have 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.
Legg Mason, Inc. (NYSE: LM) 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, Legg Mason, Inc. (NYSE: LM) now has a 50-day MA of $31.41 and 200-day MA of $32.24. It has traded in a 52-week range between $24.93 – 35.83 and today’s last price is 10.83%% lower than the 52 week high of $35.83.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over 3 consecutive years.
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