Newtek Business Services Corp. (NASDAQ: NEWT) shares slid back in value on Thursday February 2 on slower 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, -0.10% 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 upgraded shares of Newtek Business Services Corp. (NASDAQ: NEWT) from Hold to Buy today. With a rating of Buy on the stock, Newtek Business Services Corp. has a 52-week high of $16.84. The one-year price target of $16.13 is above the opening price of $15.37, that has caused a fair amount of other analysts to comment on the stock recently. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of Newtek Business Services Corp. (NASDAQ: NEWT) opened at $15.37 yesterday and traded in a range between, $15.27 and $15.48, and last traded at $15.29, which is a decrease of $0.10 compared to the previous closing price.
Newtek Business Services Corp. (NASDAQ: NEWT) currently has a market cap of 223.31M.
Newtek Business Services Corp. (NASDAQ: NEWT) Average Daily Trading Volume
The stock’s average daily volume is 184,263 shares out of a total float 12,675,000 and some 50,211 shares traded hands yesterday, 27 percent lower than the norm. 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.
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 professional investors have teams of analysts that investigate thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
Newtek Business Services Corp. (NASDAQ: NEWT) 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.
With that in mind, Newtek Business Services Corp. (NASDAQ: NEWT) now has a 50-day MA of $15.76 and 200-day MA of $14.54. It has traded in a 52-week range between $9.37 – 16.84 and today’s last price is 9.20%% lower than the 52 week high of $16.84.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more for a 3 year period.
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.