RAIT Financial Trust (NYSE: RAS) shares fell on Tuesday February 14 on 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 opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Shares of RAIT Financial Trust (NYSE: RAS) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Sell on the stock, RAIT Financial Trust has a 52-week high of $3.84. The one-year price target of $3.31 is less than the opening price of $3.80, that has caused a number of other analysts to report on the company recently. Downgrades are more likely when analysts consider that the future prospects for the security have dropped from the original recommendation, usually because of a considerable and fundamental digression in the company’s operations, future outlook or industry.
Yesterday RAIT Financial Trust (NYSE: RAS) shares last traded at $3.79, which is a decrease of $0.04 over the previous closing price. Opening at $3.80, they fluctuated from $3.79 and $3.83 throughout the day.
RAIT Financial Trust (NYSE: RAS) now has a market cap of 349.35M.
RAIT Financial Trust (NYSE: RAS) Average Daily Trading Volume
The stock’s average daily volume is 400,218 shares out of a total float 62,559,000 and some 23,071 shares crossed the trading desk yesterday, 70 percent lower than normal. lower than normal. Look for trading volume to pick up in the coming days as momentum traders 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 professional investors retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
RAIT Financial Trust (NYSE: RAS) 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 successful trades.
With that in mind, RAIT Financial Trust (NYSE: RAS) now has a 50-day MA of $3.60 and 200-day MA of $3.21. It has traded in a 52-week range between $2.04 – 3.84 and today’s last price is 1.30%% lower than the 52 week high of $3.84.
Earnings growth is an important factor to consider when buying stocks and investors identify companies that have increased their earnings at least 25% or more for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.