Education Realty Trust Inc. (NYSE: EDR) shares fell back in value Wednesday Nov 23 with 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 trading, the Dow Jones Industrial Average DJIA, -0.03% fell 3.5 points to 19,019, essentially unchanged on the day. The S&P 500 SPX, -0.26% fell 7 points, or 0.3%, to 2,196, while the Nasdaq Composite Index COMP, -0.48% shed 34 points to 5,353, a loss of 0.6%.
Analysts at Bank of America Corp. upgraded shares of Education Realty Trust Inc. (NYSE: EDR) from Neutral to Buy today. With a rating of Buy on the stock, Education Realty Trust Inc. has a 52-week high of $48.87. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $46.71, above the opening price of $40.20, a difference of 11.73 percent. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of Education Realty Trust Inc. (NYSE: EDR) opened at $40.20 on Tuesday and has traded in a range between, $39.83 and $40.43, and last traded at $39.83, which represents a drop of $0.23 per share or -0.57% over the previous closing price.
Education Realty Trust Inc. (NYSE: EDR) currently has a market cap of 2.91B.
Education Realty Trust Inc. (NYSE: EDR) Average Daily Trading Volume
117,764 shares traded hands yesterday, lower than the average, out of a total float 72,731,000. Swing traders often use increases in trading volume to determine substantial volume accumulation or circulation by institutional investors, so look for trading volume to pick up in the coming days.
However, just a day of high volume buy side trading is not enough to assert 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.
Professional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
Education Realty Trust Inc. (NYSE: EDR) 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 traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Education Realty Trust Inc. (NYSE: EDR) now has a 50-day MA of $41.13 and 200-day MA of $43.73. It has traded in a 52-week range between $34.76 – 48.87 and today’s last price is 18.50%% lower than the 52 week high of $48.87.
Earnings growth is an important factor to research when investing in stocks and investors watch for companies that have raised their earnings at least 25% or more over a 3 year period.
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