American Capital Mortgage Investment Corp. (NASDAQ: MTGE) shares rose on Thursday February 2 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.
Analysts at Zacks Investment Research downgraded shares of American Capital Mortgage Investment Corp. (NASDAQ: MTGE) from Hold to Sell in a research note to investors today. With a rating of Sell on the stock, the company has a 52-week high of $17.77. The one-year price target of $18.17 is above the opening price of $15.95, that has caused a fair amount of other analysts to issue statements on the stock recently. Downgrades occur when analysts consider that the future prospects for the security have dropped from the initial recommendation, usually due to an important and crucial change in the company’s procedures, future outlook or industry.
Shares of American Capital Mortgage Investment Corp. (NASDAQ: MTGE) opened at $15.95 yesterday and traded in a range between, $15.93 and $16.10, and last traded at $15.98, which represents an increase of $0.03 compared to the previous closing price.
American Capital Mortgage Investment Corp. (NASDAQ: MTGE) currently has a market cap of 731.61M.
American Capital Mortgage Investment Corp. (NASDAQ: MTGE) Average Daily Trading Volume
The stock’s average daily volume is 365,826 shares out of a total float 45,233,000 and some 55,006 shares traded hands yesterday, 25 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
American Capital Mortgage Investment Corp. (NASDAQ: MTGE) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, American Capital Mortgage Investment Corp. (NASDAQ: MTGE) now has a 50-day MA of $16.26 and 200-day MA of $16.76. It has traded in a 52-week range between $12.49 – 17.770 and today’s last price is 10.10%% lower than the 52 week high of $17.77.
Earnings growth is an important factor to research when buying stocks and investors seek companies that have raised their earnings by at least 25% for the past 3 years.
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