Aerohive Networks Inc. (HIVE) stock falls after being downgraded at Zacks Investment Research

Aerohive Networks Inc. (NYSE: HIVE) shares fell yesterday on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Analysts at Zacks Investment Research downgraded shares of Aerohive Networks Inc. (NYSE: HIVE) from Buy to Hold in a research note to investors today. With a rating of Hold on the stock, Aerohive Networks Inc. has a 52-week high of $7.48. The one-year price target of $7.50 is above the opening price of $6.22, that has caused a fair amount of other analysts to report on the company recently. Downgrades occur when analysts consider that the future prospects for the security have weakened from the initial recommendation, usually caused by a considerable and crucial change in the company’s procedures, future direction or industry.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.62% finished up 112.58 points, or 0.6%, at 18,281.03 yesterday.

The Nasdaq Composite Index COMP, +0.50% rose 26.36 points, or 0.5%, to end at 5,316.02, and is up 0.1% for the week to date.

The S&P 500 index SPX, +0.43% added 9.24 points, or 0.4%, to close at 2,159.73.

Aerohive Networks Inc. (NYSE: HIVE) shares last traded at $6.09, a dip of $0.15 per share or -0.02 from the previous closing price. Opening at $6.22, they ranged from $6.08 and $6.30 throughout the day.

Aerohive Networks Inc. (NYSE: HIVE) now has a market cap of 265.56M.

Aerohive Networks Inc.Trading Volume

The stock’s average daily volume is 153,032 shares out of a total float 16,552,000 and some 76,662 shares crossed the trading desk yesterday, lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to determine substantial volume aggregation or circulation by institutional investors.

While an increase in trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Aerohive Networks Inc. 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.

Traders can make more effective judgments on trades when they follow the activity of professional investors.

With that in mind, Aerohive Networks Inc. (NYSE: HIVE) now has a 50-day MA of $6.40 and 200-day MA of $6.31. It has traded in a 52-week range between $4.08 – 7.48 and today’s last price is 0.19% lower than the 52 week high of $7.48.

Earnings growth is ann important factor to research when investing in stocks and investors look for companies that have increased their earnings by at least 25% for a 3 year period.

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