Six Flags Entertainment Corp. (SIX) stock slips after being downgraded at Zacks Investment Research

Zacks Investment Research (Six Flags Entertainment Corp.: NYSE) shares rose 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.

Analysts at Zacks Investment Research downgraded shares of Zacks Investment Research (Six Flags Entertainment Corp.: NYSE) from Hold to Strong Sell in a research note to investors today. The company currently has a rating of Strong Sell on the stock. A number of other analysts have commented on the stock in recent days, and the company has earned a consensus one-year price target of $62.43, above the opening price of $60.39. Six Flags Entertainment Corp. stock has a 52-week high of $62.69. Considerable and integral changes in the company’s operations, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the initial recommendation.

Zacks Investment Research (Six Flags Entertainment Corp.: NYSE) shares last traded at $60.17, which represents an increase of $0.26 or 0.43% compared to the previous closing price. Opening at $60.39, they varied from $60.16 and $60.59 throughout the day.

Zacks Investment Research (Six Flags Entertainment Corp.: NYSE) now has a market cap of 5.54B.

Zacks Investment Research (Six Flags Entertainment Corp.: NYSE) Average Daily Trading Volume

The stock’s average daily volume is 953,946 shares out of a total float 72,556,000 and some 77,669 shares crossed the trading desk yesterday, lower than the norm. Trading volume is likely to increase in the next few days as investors often use swings in trading volume to determine heavy volume growth or distribution by institutional investors.

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

Institutional sponsorship simply 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 watching their interests is a good way to make sure you are buying the right stocks.

Zacks Investment Research (Six Flags Entertainment Corp.: NYSE) 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 winning trades.

With that in mind, Zacks Investment Research (Six Flags Entertainment Corp.: NYSE) now has a 50-day MA of $57.87 and 200-day MA of $54.97. It has traded in a 52-week range between $45.24 – 62.690 and today’s last price is 4.03%% lower than the 52 week high of $62.69.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% over the past 3 years.

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