Taylor Morrison Home Corp (NASDAQ: TMHC) 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 Taylor Morrison Home Corp (NASDAQ: TMHC) were downgraded by analysts at FBR & Co in a note to their investors today. The company currently has a rating of Market Perform on the stock. The one-year price target of $20.43 is above the opening price of $18.57, resulting a number of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Taylor Morrison Home Corp stock has a high of $21.80. Downgrades happen when analysts consider that the future prospects for the security have diminished from the original recommendation, usually caused by a material and fundamental change in the company’s procedures, future direction or industry.
Yesterday Taylor Morrison Home Corp (NASDAQ: TMHC) shares last traded at $18.67, which is a drop of $0.30 compared to the previous closing price. Opening at $18.57, they ranged from $18.41 and $18.81 throughout the day.
Taylor Morrison Home Corp (NASDAQ: TMHC) now has a market cap of 568.33M.
Taylor Morrison Home Corp (NASDAQ: TMHC) Average Daily Trading Volume
74,445 shares traded hands yesterday, 30 percent below normal, out of a total float 29,245,000. 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.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
Taylor Morrison Home Corp (NASDAQ: TMHC) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for Taylor Morrison Home Corp (NASDAQ: TMHC) have ranged from $11.82 – 21.80, and the stock now has a 50-day MA of $19.65 and 200-day MA of $18.43. Today’s last price is 14.36%% below the 52 week high of $21.80.
Earnings growth is an important factor to research when buying stocks and investors seek companies that have increased their earnings at least 25% or more over 3 consecutive years.
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