Berry Plastics Group Inc. (BERY) shares fall following downgrade at Macquarie

Berry Plastics Group Inc. (NYSE: BERY) shares rose on Monday Dec 5 with 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 Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.

The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.

Shares of Berry Plastics Group Inc. (NYSE: BERY) were downgraded by analysts at Macquarie in a note to their investors today. With a rating of Neutral on the shares, the company has a 52-week high of $50.88. A number of other analysts have issued reports on the stock in recent days, and the company has earned a consensus one-year price target of $55.38, above the opening price of $47.96. Downgrades happen when analysts consider that the future prospects for the security have diminished from the original recommendation, often due to a material and major digression in the company’s actions, future vision or industry.

Berry Plastics Group Inc. (NYSE: BERY) shares last traded at $48.74, a spike of $0.03 or 0.06% from the previous closing price. Opening at $47.96, they fluctuated from $47.96 and $48.86 throughout the day.

Berry Plastics Group Inc. (NYSE: BERY) currently has a market cap of 5.93B.

Berry Plastics Group Inc. (NYSE: BERY) Average Daily Trading Volume

89,073 shares crossed the trading desk yesterday, lower than normal, out of a total float 121,146,000. Investors often use swings in trading volume to identify heavy volume aggregation or distribution by institutional investors, so trading volume is likely to increase in the next few days.

However, a single day of high volume buy side trading is not enough to determine a trend. So 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 taking a postion in a stock you are researching.

Berry Plastics Group Inc. (NYSE: BERY) 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 how they influence moving averages, traders are able to make make smarter trades.

With that in mind, Berry Plastics Group Inc. (NYSE: BERY) now has a 50-day MA of $45.43 and 200-day MA of $42.42. It has traded in a 52-week range between $27.79 – 50.88 and today’s last price is 4.21%% lower than the 52 week high of $50.88.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.

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