Equifax Inc. (NYSE: EFX) 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 Equifax Inc. (NYSE: EFX) from Buy to Hold in a research note to investors today. The company currently has a rating of Hold on the stock. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and Equifax Inc. has earned a consensus one-year price target of $139.67, above the opening price of $120.00. Equifax Inc. stock has a 52-week high of $136.97. Downgrades are more common when analysts feel that the future prospects for the security have weakened from the original recommendation, often due to a material and fundamental digression in the company’s operations, future direction or industry.
Equifax Inc. (NYSE: EFX) shares last traded at $121.45, which represents a jump of $1.95 or 1.63% over the previous closing price. Opening at $120.00, they ranged from $119.25 and $121.45 throughout the day.
Equifax Inc. (NYSE: EFX) now has a market cap of 14.54B.
Equifax Inc. (NYSE: EFX) Average Daily Trading Volume
131,699 shares traded hands yesterday, lower than normal, out of a total float 119,083,000. Investors often use upticks in trading volume to determine heavy volume growth or distribution by institutional investors, so look for trading volume to pick up in the coming days.
As with all possible breakouts, investors watch for volume to be at least 40%-50% higher than normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are researching.
Equifax Inc. (NYSE: EFX) 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 winning trades.
With that in mind, Equifax Inc. (NYSE: EFX) now has a 50-day MA of $127.04 and 200-day MA of $128.34. It has traded in a 52-week range between $91.72 – 136.97 and today’s last price is 11.33%% lower than the 52 week high of $136.97.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings at least 25% or more for a 3 year period.
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