Columbia Sportswear Co. (COLM) Shares Slip, Investors Watching Closely, Here is Why

Columbia Sportswear Co. (NASDAQ: COLM) 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 Zacks Investment Research downgraded shares of Columbia Sportswear Co. (NASDAQ: COLM) from Hold to Sell in a research note to investors today. With a rating of Sell on the stock, Columbia Sportswear Co. has a 52-week high of $62.95. The one-year price target of $64.38 is higher than the opening price of $59.46, that has caused a number of other analysts to report on the company in recent days. Material and integral changes in the company’s actions, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the original recommendation.

Columbia Sportswear Co. (NASDAQ: COLM) shares last traded at $59.64, a jump of $0.30 or 0.51% over the previous closing price. Opening at $59.46, they fluctuated from $59.39 and $60.14 throughout the day.

Columbia Sportswear Co. (NASDAQ: COLM) currently has a market cap of 4,162.81B.

Columbia Sportswear Co. (NASDAQ: COLM) Average Daily Trading Volume

The stock’s average daily volume is 267,991 shares out of a total float 27,010,000 and some 11,860 shares traded hands yesterday, below the norm. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to pinpoint heavy volume growth or dissemination by institutional investors.

While increased trading for one day will not mean much, conversely, 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Columbia Sportswear Co. (NASDAQ: COLM) 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 influence— traders are able to make make the best trades.

Trades for Columbia Sportswear Co. (NASDAQ: COLM) have ranged from $43.56 – 62.95, and the stock now has a 50-day MA of $58.11 and 200-day MA of $56.98. Today’s last price is 5.26%% below the 52 week high of $62.95.

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

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