SeaWorld Entertainment Inc. (SEAS) Shares Slip, Investors Watching Closely, Here is Why

SeaWorld Entertainment Inc. (NYSE: SEAS) shares rose on in early trade Wednesday with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Analysts at Zacks Investment Research downgraded shares of SeaWorld Entertainment Inc. (NYSE: SEAS) from Hold to Sell in a research note to investors today. With a rating of Sell on the shares, SeaWorld Entertainment Inc. has a 52-week high of $21.85. A number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $14.17, higher than the opening price of $13.58. Considerable and fundamental digressions in the company’s procedures, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the original recommendation.

U.S. stocks mostly climbed on Wednesday as crude-oil prices traded above $51 a barrel.

The Dow Jones Industrial Average DJIA, +0.18% gained 33 points, or 0.2% at 18,195, the S&P 500 index SPX, +0.07% advanced 2 points, or less than 0.1%, at 2,141, while the Nasdaq Composite Index COMP, -0.08% traded little-changed at 5,240.

U.S. stocks closed higher Tuesday as investors welcomed stronger-than-expected quarterly results from a host of companies

The S&P 500 index SPX, +0.62% finished up 13.10 points, or 0.6%, at 2,139.60, with all 11 main sectors trading higher.

The Dow Jones Industrial Average DJIA, +0.42% rose 75.54 points, or 0.4%, to close at 18,161.94.

Meanwhile, the Nasdaq Composite Index COMP, +0.85% added 44.01 points, or 0.9%, to close at 5,243.84.

SeaWorld Entertainment Inc. (NYSE: SEAS) shares last traded at $13.66, which is an increase of $0.06 or 0.44% from the previous closing price. Opening at $13.58, they fluctuated from $13.53 and $13.69 throughout the day.

SeaWorld Entertainment Inc. (NYSE: SEAS) now has a market cap of 1.16B.

SeaWorld Entertainment Inc.Trading Volume

153,902 shares crossed the trading desk yesterday, lower than normal, out of a total float 63,554,000. Investors often use swings in trading volume to pinpoint heavy volume growth or circulation by institutional investors, so look for trading volume to pick up in the coming days.

As with all possible breakouts, investors look 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these have teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are considering.

SeaWorld Entertainment Inc. 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, SeaWorld Entertainment Inc. (NYSE: SEAS) now has a 50-day MA of $13.32 and 200-day MA of $15.70. It has traded in a 52-week range between $11.77 – 21.85 and today’s last price is 37.48%% lower than the 52 week high of $21.85.

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

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