Global Payments Inc. (GPN) Shares Slip, Investors Watching Closely, Here is Why

Global Payments Inc. (NYSE: GPN) shares fell 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.

Shares of Global Payments Inc. (NYSE: GPN) were downgraded by analysts at Zacks Investment Research in a note to their investors today. The company currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have spoken on the stock recently, and Global Payments Inc. has secured a consensus one-year price target of $85.59, higher than the opening price of $70.33, a difference of 12.28 percent. Global Payments Inc. stock has a 52-week high of $79.93. Important and crucial changes in the company’s actions, future vision or industry can cause downgrades as the analysts feel that the future prospects for the security have dropped from the initial recommendation.

Global Payments Inc. (NYSE: GPN) shares last traded at $69.68, which represents a dip of $0.26 per share or -0.37% from the previous closing price. Opening at $70.33, they fluctuated from $69.68 and $70.49 throughout the day.

Global Payments Inc. (NYSE: GPN) currently has a market cap of 10.71B.

Global Payments Inc. (NYSE: GPN) Average Daily Trading Volume

63,084 shares crossed the trading desk yesterday, below the norm, out of a total float 136,933,000. Trading volume is likely to increase in the next few days as swing traders often use swings in trading volume to pinpoint substantial volume growth or dissemination by institutional investors.

As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.

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 researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Global Payments Inc. (NYSE: GPN) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

Trades for Global Payments Inc. (NYSE: GPN) have ranged from $51.29 – 79.93, and the stock now has a 50-day MA of $73.31 and 200-day MA of $74.50. Today’s last price is 12.82%% below the 52 week high of $79.93.

Earnings growth is an important factor to research when buying stocks and investors watch for companies that have been successful at growing their earnings by at least 25% for the past 3 years.

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