AutoNation, Inc. (NYSE: AN) shares fell on Thursday February 2 on lower trade volume than normal after more analysts initiated coverage on the stock.
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 Susquehanna initiated coverage on AutoNation, Inc. (NYSE: AN) stock, starting the company at Neutral. Susquehanna currently has a rating of Neutral on the stock. The one-year price target of $52.50 is higher than the opening price of $52.23, that has caused a number of other analysts to comment on the company recently. Looking back over the last 52 weeks, AutoNation, Inc. stock has a high of $54.15. Price changes targets are not unusual as analysts and brokerage firms will publish periodic updates after initiating coverage,.
Shares of AutoNation, Inc. (NYSE: AN) opened at $52.23 yesterday trading between $51.84 and $52.48, and last traded at $52.20, which represents a dip of $0.22 compared to the previous closing price.
AutoNation, Inc. (NYSE: AN) now has a market cap of 5.27B.
AutoNation, Inc. (NYSE: AN) Average Daily Trading Volume
96,363 shares crossed the trading desk yesterday, 54 percent below normal, out of a total float 70,868,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
AutoNation, Inc. (NYSE: AN) 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 traders to make those trends work in their favor and increase the number of winning trades.
Trades for AutoNation, Inc. (NYSE: AN) have ranged from $39.28 – 54.15, and the stock now has a 50-day MA of $50.61 and 200-day MA of $48.27. Today’s last price is 3.60%% lower than the 52 week high of $54.15.
Earnings growth is an important factor to research when investing in stocks and investors look for companies that have raised their earnings by at least 25% over the past 3 years.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.