New Residential Investment Corp. (NYSE: NRZ) shares fell back in value on Tuesday January 31 on heavier 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 DJIA, -0.60% fell 140 points, or 0.7%, to 19,833, with 26 of the 30 blue-chip companies trading lower. Nike, Inc. NKE, -1.10% down 2.4% and Intel Corp. INTC, -1.70% off 1%, were leading losses.
The S&P 500 SPX, -0.33% was off by 10 points, or 0.5%, to 2,270 with seven of the 11 main sectors trading lower. Industrials, consumer-discretionary, and technology shares were the worst performers, while real estate and utilities stocks attracted buyers.
The health-care sector, which was down in early trade, rebounded after President Trump called for scaling back drugmaker’s regulation, lowering taxes and prices of medicines.
The Nasdaq Composite COMP, -0.25% declined 31 points, or 0.6%, to 5,581.
Analysts at Compass Point upgraded shares of New Residential Investment Corp. (NYSE: NRZ) from Neutral to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $16.43. The one-year price target of $16.25 is higher than the opening price of $15.06, resulting a fair amount of other analysts to comment on the company recently. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday New Residential Investment Corp. (NYSE: NRZ) shares last traded at $15.12, a drop of $0.54 from the previous closing price. Opening at $15.06, they ranged from $15.03 and $15.23 throughout the day.
New Residential Investment Corp. (NYSE: NRZ) now has a market cap of 3.79B.
New Residential Investment Corp. (NYSE: NRZ) Average Daily Trading Volume
18,507,422 shares traded hands yesterday, 38 percent higher than the average, out of a total float 246,715,000. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation 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.
These instituitional investors retain teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.
New Residential Investment Corp. (NYSE: NRZ) 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 New Residential Investment Corp. (NYSE: NRZ) have ranged from $9.69 – 16.4300, and the stock now has a 50-day MA of $16.00 and 200-day MA of $14.66. Today’s last price is 8.00%% under the 52 week high of $16.43.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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