Nordstrom, Inc. (NYSE: JWN) 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.
Analysts at Goldman Sachs Group, Inc. (The) downgraded shares of Nordstrom, Inc. (NYSE: JWN) from Neutral 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 $62.82. A number of other analysts have issued reports on the stock in recent days, and Nordstrom, Inc. has earned a consensus one-year price target of $51.28, above the opening price of $42.81, a difference of 11.78 percent. Downgrades are more common when analysts consider that the future prospects for the security have weakened from the original recommendation, often because of a material and fundamental change in the company’s operations, future outlook or industry.
Yesterday Nordstrom, Inc. (NYSE: JWN) shares last traded at $43.53, which is a dip of $0.29 over the previous closing price. Opening at $42.81, they varied from $42.50 and $43.56 throughout the day.
Nordstrom, Inc. (NYSE: JWN) now has a market cap of 7.55B.
Nordstrom, Inc. (NYSE: JWN) Average Daily Trading Volume
The stock’s average daily volume is 3,475,490 shares out of a total float 116,686,000 and some 705,124 shares crossed the trading desk yesterday, 88 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as investors 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.
Institutional investors such as these have teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
Nordstrom, Inc. (NYSE: JWN) 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 successful trades.
With that in mind, Nordstrom, Inc. (NYSE: JWN) now has a 50-day MA of $46.94 and 200-day MA of $50.53. It has traded in a 52-week range between $35.01 – 62.82 and today’s last price is 30.71%% lower than the 52 week high of $62.82.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% for the past 3 years.
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