Ralph Lauren Corporation (NYSE: RL) shares fell on Thursday February 2 on heavier 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 Telsey Advisory Group downgraded shares of Ralph Lauren Corporation (NYSE: RL) from Outperform to Market Perform in a research note to investors today. Telsey Advisory Group currently has a rating of Market Perform on the stock. As a means of comparison, a number of other analysts have spoken on the stock recently, and Ralph Lauren Corporation has secured a consensus one-year price target of $101.39, above the opening price of $80.64, a difference of 13.12 percent. Ralph Lauren Corporation stock has a 52-week high of $114.00. Downgrades occur when analysts consider that the future prospects for the security have dropped from the original recommendation, often caused by a considerable and integral digression in the company’s operations, future direction or industry.
Shares of Ralph Lauren Corporation (NYSE: RL) opened at $80.64 yesterday and traded in a range between, $77.15 and $81.00, and last traded at $77.30, which is a dip of $10.07 over the previous closing price.
Ralph Lauren Corporation (NYSE: RL) now has a market cap of 6.35B.
Ralph Lauren Corporation (NYSE: RL) Average Daily Trading Volume
6,130,917 shares traded hands yesterday, 50 percent above the norm, out of a total float 55,661,000. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.
Ralph Lauren Corporation (NYSE: RL) 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, Ralph Lauren Corporation (NYSE: RL) now has a 50-day MA of $90.18 and 200-day MA of $99.61. It has traded in a 52-week range between $77.15 – 114.00 and today’s last price is 32.19%% lower than the 52 week high of $114.00.
Earnings growth is an important factor to look at when investing in stocks and investors identify companies that have grown their earnings at least 25% or more for 3 consecutive years.
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