Freightcar America, Inc. (NASDAQ: RAIL) shares slid back in value on Wednesday January 18 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.
Analysts at Zacks Investment Research upgraded shares of Freightcar America, Inc. (NASDAQ: RAIL) from Sell to Hold today. The company currently has a rating of Hold on the stock. The one-year price target of $15.00 is higher than the opening price of $14.80, that has caused a number of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Freightcar America, Inc. stock has a high of $20.23. Usually, after analysts publish an upgrade report on a stock, they will later issue sporadic revisions, such as a price target change.
Yesterday Freightcar America, Inc. (NASDAQ: RAIL) shares last traded at $14.79, a decrease of $0.04 compared to the previous closing price. Opening at $14.80, they ranged from $14.69 and $14.96 throughout the day.
Freightcar America, Inc. (NASDAQ: RAIL) now has a market cap of 183.16M.
Freightcar America, Inc. (NASDAQ: RAIL) Average Daily Trading Volume
11,895 shares traded hands yesterday, 87 percent below normal, out of a total float 11,453,000. 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
Freightcar America, Inc. (NASDAQ: RAIL) 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 Freightcar America, Inc. (NASDAQ: RAIL) have ranged from $10.87 – 20.23, and the stock now has a 50-day MA of $15.20 and 200-day MA of $14.34. Today’s last price is 26.89%% under the 52 week high of $20.23.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% over a 3 year period.
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