Cardtronics Inc. (CATM) Shares Slip, Investors Watching Closely, Here is Why

Cardtronics Inc. (NASDAQ: CATM) shares rose on Thursday Nov 17 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, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”

The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.

Analysts at Wells Fargo & Co. downgraded shares of Cardtronics Inc. (NASDAQ: CATM) from Outperform to Market Perform in a research note to investors today. With a rating of Market Perform on the shares, Cardtronics Inc. has a 52-week high of $52.79. As a means of comparison, a number of other analysts have spoken on the company in recent days, and the company has secured a consensus one-year price target of $52.50, higher than the opening price of $51.34. Considerable and integral digressions in the company’s actions, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the initial recommendation.

Shares of Cardtronics Inc. (NASDAQ: CATM) opened at $51.34 on Monday trading between $51.34 and $52.24, and last traded at $51.81, which represents a jump of $0.40 or 0.78% over the previous closing price.

Cardtronics Inc. (NASDAQ: CATM) currently has a market cap of 2,347.10B.

Cardtronics Inc. (NASDAQ: CATM) Average Daily Trading Volume

The stock’s average daily volume is 385,312 shares out of a total float 41,449,000 and some 15,877 shares crossed the trading desk yesterday, below the norm. Trading volume is likely to increase in the next few days as swing traders often use swings in trading volume to identify substantial volume aggregation or distribution by institutional investors.

However, just a day of high volume buy side trading is not enough to affirm a trend. So market traders will continue to look for institutional sponsorship as a cue 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 taking a postion in a stock you are researching.

Cardtronics Inc. (NASDAQ: CATM) 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, Cardtronics Inc. (NASDAQ: CATM) now has a 50-day MA of $48.82 and 200-day MA of $43.74. It has traded in a 52-week range between $28.01 – 52.79 and today’s last price is 1.86%% lower than the 52 week high of $52.79.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% over 3 consecutive years.

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