La-Z-Boy Incorporated (NYSE: LZB) shares fell 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.
Shares of La-Z-Boy Incorporated (NYSE: LZB) were downgraded by analysts at Zacks Investment Research in a note to their investors today. Zacks Investment Research currently has a rating of Hold on the shares. A number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $33.00, above the opening price of $28.55, a difference of 11.70 percent. La-Z-Boy Incorporated stock has a 52-week high of $32.90. Downgrades are more common when analysts consider that the future prospects for the security have weakened from the initial recommendation, often due to a material and integral change in the company’s procedures, future direction or industry.
Yesterday La-Z-Boy Incorporated (NYSE: LZB) shares last traded at $28.20, a dip of $0.30 from the previous closing price. Opening at $28.55, they varied from $28.05 and $28.55 throughout the day.
La-Z-Boy Incorporated (NYSE: LZB) now has a market cap of 1.38B.
La-Z-Boy Incorporated (NYSE: LZB) Average Daily Trading Volume
The stock’s average daily volume is 385,324 shares out of a total float 47,769,000 and some 15,855 shares traded hands yesterday, 111 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that investigate thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
La-Z-Boy Incorporated (NYSE: LZB) 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 La-Z-Boy Incorporated (NYSE: LZB) have ranged from $19.56 – 32.90, and the stock now has a 50-day MA of $30.32 and 200-day MA of $27.84. Today’s last price is 14.29%% below the 52 week high of $32.90.
Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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