Gartner, Inc. (NYSE: IT) shares rose on Tuesday February 7 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Analysts at Zacks Investment Research downgraded shares of Gartner, Inc. (NYSE: IT) from Buy to Hold in a research note to investors today. With a rating of Hold on the shares, Gartner, Inc. has a 52-week high of $105.45. The one-year price target of $109.78 is above the opening price of $99.02, that has caused a number of other analysts to comment on the company recently. Material and fundamental changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the original recommendation.
Yesterday Gartner, Inc. (NYSE: IT) shares last traded at $99.60, which is a jump of $0.53 over the previous closing price. Opening at $99.02, they varied from $98.79 and $99.80 throughout the day.
Gartner, Inc. (NYSE: IT) now has a market cap of 8.23B.
Gartner, Inc. (NYSE: IT) Average Daily Trading Volume
24,274 shares crossed the trading desk yesterday, 43 percent below normal, out of a total float 79,692,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to 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 buying a stock you are researching.
Gartner, Inc. (NYSE: IT) 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 affect—it allows for traders to make more effective decisions on trades.
With that in mind, Gartner, Inc. (NYSE: IT) now has a 50-day MA of $100.17 and 200-day MA of $95.57. It has traded in a 52-week range between $79.00 – 105.45 and today’s last price is 5.55%% lower than the 52 week high of $105.45.
Earnings growth is a critical factor to consider when buying stocks and investors seek companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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