NeoGenomics Inc. (NEO) Shares Slip, Investors Watching Closely, Here is Why

Zacks Investment Research (NeoGenomics Inc.: NASDAQ) shares fell on Wednesday Dec 28 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, U.S. stocks were little changed on Wednesday, as investors found few reasons to keep pushing shares higher towards the 20,000 mark.

The Dow Jones Industrial Average DJIA, -0.11% rose 3.1 points to 19,949, essentially unchanged on the day. The S&P 500 SPX, -0.39% lost 3 points, or 0.1%, to 2,266 while the Nasdaq Composite Index COMP, -0.59% slipped 6.4 points, or 0.1%, to 5,482.

Shares of Zacks Investment Research (NeoGenomics Inc.: NASDAQ) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Sell on the shares, NeoGenomics Inc. has a 52-week high of $9.88. A number of other analysts have commented on the company recently, and the company has secured a consensus one-year price target of $11.06, higher than the opening price of $8.84. Considerable and fundamental changes in the company’s procedures, future direction or industry can cause downgrades as the analysts feel that the future prospects for the security have dropped from the original recommendation.

Shares of Zacks Investment Research (NeoGenomics Inc.: NASDAQ) opened at $8.84 on Tuesday trading between $8.70 and $8.87, and last traded at $8.82, a drop of $0.03 per share or -0.34% from the previous closing price.

Zacks Investment Research (NeoGenomics Inc.: NASDAQ) currently has a market cap of 692.48M.

Zacks Investment Research (NeoGenomics Inc.: NASDAQ) Average Daily Trading Volume

The stock’s average daily volume is 334,229 shares out of a total float 53,467,000 and some 14,063 shares crossed the trading desk yesterday, lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to determine large volume aggregation or dissemination by institutional investors.

However, just a day of high volume buy side trading is not enough to affirm a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Zacks Investment Research (NeoGenomics Inc.: NASDAQ) 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.

Trades for Zacks Investment Research (NeoGenomics Inc.: NASDAQ) have ranged from $5.49 – 9.88, and the stock now has a 50-day MA of $9.12 and 200-day MA of $8.43. Today’s last price is 10.72%% below the 52 week high of $9.88.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more over 3 consecutive years.

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