TimkenSteel Corp. (NYSE: TMST) shares fell on Tuesday Nov 29 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
U.S. stocks on Tuesday morning traded near break-even levels, with the main benchmarks switching in and out of negative territory
The Dow Jones Industrial Average DJIA, -0.09% was flat at 19,102. Meanwhile, the Nasdaq Composite COMP, +0.00% traded 18 points, or 0.1%, at 5,362.
The S&P 500 index SPX, -0.04% was off by 0.1%, or 2 points, at 2,199, with five of the 11 main sectors trading lower.
Shares of TimkenSteel Corp. (NYSE: TMST) were downgraded by analysts at Macquarie in a note to their investors today. Macquarie currently has a rating of Underperform on the shares. As a means of comparison, 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 $11.10, a decrease compared to the opening price of $14.32, a difference of 7.70 percent. TimkenSteel Corp. stock has a 52-week high of $15.90. Downgrades are more likely when analysts consider that the future prospects for the security have dropped from the original recommendation, usually due to an important and major change in the company’s operations, future outlook or industry.
TimkenSteel Corp. (NYSE: TMST) shares last traded at $14.42, a decrease of $0.67 per share or -4.44% compared to the previous closing price. Opening at $14.32, they ranged from $14.04 and $14.51 throughout the day.
TimkenSteel Corp. (NYSE: TMST) currently has a market cap of 637.67M.
TimkenSteel Corp. (NYSE: TMST) Average Daily Trading Volume
134,430 shares crossed the trading desk yesterday, lower than the average, out of a total float 37,475,000. Momentum traders often use swings in trading volume to determine substantial volume accumulation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
While an increase in trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
TimkenSteel Corp. (NYSE: TMST) 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 successful trades.
With that in mind, TimkenSteel Corp. (NYSE: TMST) now has a 50-day MA of $11.69 and 200-day MA of $10.34. It has traded in a 52-week range between $3.69 – 15.90 and today’s last price is 9.31%% lower than the 52 week high of $15.90.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have grown their earnings by at least 25% for 3 consecutive years.
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