WEC Energy Group, Inc. (WEC) Stock Moves Down and Here’s Why

WEC Energy Group, Inc. (NYSE: WEC) 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.

Shares of WEC Energy Group, Inc. (NYSE: WEC) were downgraded by analysts at Mizuho in a note to their investors today. With a rating of Neutral on the stock, the company has a 52-week high of $66.10. The one-year price target of $60.59 is higher than the opening price of $56.92, causing a fair amount of other analysts to issue statements on the stock recently. Downgrades are more likely when analysts feel that the future prospects for the security have weakened from the original recommendation, usually caused by an important and fundamental digression in the company’s operations, future outlook or industry.

Yesterday WEC Energy Group, Inc. (NYSE: WEC) shares last traded at $56.48, a dip of $0.74 over the previous closing price. Opening at $56.92, they ranged from $56.05 and $56.92 throughout the day.

WEC Energy Group, Inc. (NYSE: WEC) currently has a market cap of 17.83B.

WEC Energy Group, Inc. (NYSE: WEC) Average Daily Trading Volume

The stock’s average daily volume is 1,694,880 shares out of a total float 315,020,000 and some 929,122 shares traded hands yesterday, 103 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify heavy volume accumulation or distribution 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 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 it is good confirmation to see them buying a stock you are considering.

WEC Energy Group, Inc. (NYSE: WEC) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.

With that in mind, WEC Energy Group, Inc. (NYSE: WEC) now has a 50-day MA of $58.41 and 200-day MA of $59.36. It has traded in a 52-week range between $53.66 – 66.10 and today’s last price is 14.56%% lower than the 52 week high of $66.10.

Earnings growth is an important factor to research when buying stocks and investors identify companies that have increased their earnings by at least 25% for the past 3 years.

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