Haemonetics Corporation (NYSE: HAE) 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 Barrington Research downgraded shares of Haemonetics Corporation (NYSE: HAE) from Outperform to Market Perform in a research note to investors today. Barrington Research currently has a rating of Market Perform on the stock. The one-year price target of $39.43 is higher than the opening price of $37.79, causing a fair amount of other analysts to comment on the company recently. Looking back over the last year, Haemonetics Corporation stock has a high of $41.65. Downgrades happen when analysts feel that the future prospects for the security have weakened from the initial recommendation, usually due to an important and fundamental change in the company’s actions, future outlook or industry.
Shares of Haemonetics Corporation (NYSE: HAE) opened at $37.79 yesterday trading between $37.55 and $38.39, and last traded at $38.25, an increase of $0.25 from the previous closing price.
Haemonetics Corporation (NYSE: HAE) now has a market cap of 1.98B.
Haemonetics Corporation (NYSE: HAE) Average Daily Trading Volume
180,183 shares crossed the trading desk yesterday, 111 percent lower than the average, out of a total float 51,327,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
Haemonetics Corporation (NYSE: HAE) 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 successful trades.
Trades for Haemonetics Corporation (NYSE: HAE) have ranged from $25.98 – 41.65, and the stock now has a 50-day MA of $40.06 and 200-day MA of $37.29. Today’s last price is 8.16%% below the 52 week high of $41.65.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more over the past 3 years.
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