UFP Technologies, Inc. (UFPT) stock down despite upgrade at Zacks Investment Research

UFP Technologies, Inc. (NASDAQ: UFPT) shares slid back in value on Wednesday January 25 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened

The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.

The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.

All three main indexes set intraday records shortly after the opening bell.

Analysts at Zacks Investment Research upgraded shares of UFP Technologies, Inc. (NASDAQ: UFPT) from Strong Sell to Hold today. The company currently has a rating of Hold on the shares. A number of other analysts have issued reports on the company recently, and UFP Technologies, Inc. has earned a consensus one-year price target of $28.25, higher than the opening price of $24.55. UFP Technologies, Inc. stock has a 52-week high of $27.50. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.

Yesterday UFP Technologies, Inc. (NASDAQ: UFPT) shares last traded at $24.43, which is a decrease of $0.08 over the previous closing price. Opening at $24.55, they fluctuated from $24.30 and $24.90 throughout the day.

UFP Technologies, Inc. (NASDAQ: UFPT) now has a market cap of 175.81M.

UFP Technologies, Inc. (NASDAQ: UFPT) Average Daily Trading Volume

5,271 shares crossed the trading desk yesterday, 105 percent below normal, out of a total float 5,840,000. 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.

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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

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

UFP Technologies, Inc. (NASDAQ: UFPT) 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.

Trades for UFP Technologies, Inc. (NASDAQ: UFPT) have ranged from $20.40 – 27.500, and the stock now has a 50-day MA of $25.34 and 200-day MA of $25.20. Today’s last price is 11.18%% under the 52 week high of $27.50.

Earnings growth is an important factor to consider when buying stocks and investors seek companies that have increased their earnings at least 25% or more over a 3 year period.

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