Wesco Aircraft Holdings, Inc. (WAIR) shares fall following downgrade at Zacks Investment Research

Wesco Aircraft Holdings, Inc. (NYSE: WAIR) 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 Wesco Aircraft Holdings, Inc. (NYSE: WAIR) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Sell on the shares, the company has a 52-week high of $15.78. A number of other analysts have spoken on the stock recently, and the company has secured a consensus one-year price target of $14.75, lower than the opening price of $15.00. Downgrades happen when analysts believe that the future prospects for the security have weakened from the initial recommendation, often caused by an important and integral digression in the company’s actions, future vision or industry.

Shares of Wesco Aircraft Holdings, Inc. (NYSE: WAIR) opened at $15.00 yesterday and traded in a range between, $14.98 and $15.05, and last traded at $15.03, a dip of $0.08 from the previous closing price.

Wesco Aircraft Holdings, Inc. (NYSE: WAIR) now has a market cap of 1.49B.

Wesco Aircraft Holdings, Inc. (NYSE: WAIR) Average Daily Trading Volume

16,699 shares crossed the trading desk yesterday, 94 percent below the norm, out of a total float 55,782,000. 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 professional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are considering.

Wesco Aircraft Holdings, Inc. (NYSE: WAIR) 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, Wesco Aircraft Holdings, Inc. (NYSE: WAIR) now has a 50-day MA of $15.15 and 200-day MA of $14.00. It has traded in a 52-week range between $10.12 – 15.775 and today’s last price is 4.75%% lower than the 52 week high of $15.78.

Earnings growth is a critical factor to consider when investing in stocks and investors seek companies that have grown their earnings by at least 25% for 3 consecutive years.

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