Urban Outfitters, Inc. (NASDAQ: URBN) shares fell on Monday February 13 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Analysts at Wedbush reiterated a Neutral rating on shares of Urban Outfitters, Inc. (NASDAQ: URBN) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Neutral on the stock, the company has a 52-week high of $40.80. The one-year price target of $30.76 is higher than the opening price of $27.55, resulting a fair amount of other analysts to issue statements on the company in recent days. Share prices sometimes get a spike to the upside when analysts reiterate coverage.
Yesterday Urban Outfitters, Inc. (NASDAQ: URBN) shares last traded at $27.29, a drop of $0.15 compared to the previous closing price. Opening at $27.55, they fluctuated from $27.18 and $27.59 throughout the day.
Urban Outfitters, Inc. (NASDAQ: URBN) now has a market cap of 3.17B.
Urban Outfitters, Inc. (NASDAQ: URBN) Average Daily Trading Volume
97,835 shares traded hands yesterday, 50 percent lower than normal, out of a total float 88,477,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them buying a stock you are researching.
Urban Outfitters, Inc. (NASDAQ: URBN) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Urban Outfitters, Inc. (NASDAQ: URBN) have ranged from $23.90 – 40.80, and the stock now has a 50-day MA of $27.11 and 200-day MA of $32.44. Today’s last price is 33.11%% under the 52 week high of $40.80.
Indeed, earnings growth is among the most important 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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