Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) 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 Zacks Investment Research downgraded shares of Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) from Buy to Hold in a research note to investors today. With a rating of Hold on the stock, the company has a 52-week high of $278.63. A number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $301.95, higher than the opening price of $268.85. considerable and crucial digressions in the company’s actions, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the original recommendation.
Yesterday Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) shares last traded at $268.49, which is a dip of $1.05 from the previous closing price. Opening at $268.85, they fluctuated from $267.25 and $269.65 throughout the day.
Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) now has a market cap of 16.71B.
Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) Average Daily Trading Volume
The stock’s average daily volume is 791,066 shares out of a total float 59,255,000 and some 46,428 shares crossed the trading desk yesterday, 57 percent lower than normal. 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.
While increased trading for one day will not mean much, conversely, 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.
Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) 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 Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) have ranged from $146.77 – 278.63, and the stock now has a 50-day MA of $262.82 and 200-day MA of $253.49. Today’s last price is 3.64%% below the 52 week high of $278.63.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings at least 25% or more over the past 3 years.
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