Olin Corporation (NYSE: OLN) 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 Monness Crespi & Hardt downgraded shares of Olin Corporation (NYSE: OLN) from Buy to Neutral in a research note to investors today. With a rating of Neutral on the shares, Olin Corporation has a 52-week high of $30.19. The one-year price target of $27.60 is less than the opening price of $29.31, causing a fair amount of other analysts to comment on the stock in recent days. Downgrades are more likely when analysts believe that the future prospects for the security have diminished from the original recommendation, usually because of an important and integral digression in the company’s operations, future direction or industry.
Shares of Olin Corporation (NYSE: OLN) opened at $29.31 yesterday trading between $29.31 and $30.19, and last traded at $29.55, which is a spike of $0.22 over the previous closing price.
Olin Corporation (NYSE: OLN) now has a market cap of 4.88B.
Olin Corporation (NYSE: OLN) Average Daily Trading Volume
680,577 shares crossed the trading desk yesterday, 18 percent lower than the average, out of a total float 148,550,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings 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 retain teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Olin Corporation (NYSE: OLN) 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, Olin Corporation (NYSE: OLN) now has a 50-day MA of $26.45 and 200-day MA of $23.08. It has traded in a 52-week range between $12.29 – 30.19 and today’s last price is 2.12%% lower than the 52 week high of $30.19.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% for a 3 year period.
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