USG Corp. (USG) stock falls, “Sell” rating reaffirmed by Goldman Sachs Group Inc. Analysts

USG Corp. (NYSE: USG) shares fell on Tuesday Nov 22 with 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, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.

The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.

Goldman Sachs Group Inc. analysts reiterated its Sell rating on USG Corp. (NYSE: USG) in a note to investors, making it one of the more closely watched stocks on Wall Street. Goldman Sachs Group Inc. currently has a rating of Sell on the shares. The one-year price target of $31.08 is higher than the opening price of $27.61, resulting a fair amount of other analysts to issue statements on the company recently. Looking back over the last 52 weeks, USG Corp. stock has a high of $30.84. Share prices sometimes get a jump to the upside when analysts reiterate coverage.

Shares of USG Corp. (NYSE: USG) opened at $27.61 on Tuesday and has traded in a range between, $27.53 and $28.06, and last traded at $27.67, which is a decrease of $0.60 per share or -2.12% over the previous closing price.

USG Corp. (NYSE: USG) now has a market cap of 4.04B.

USG Corp. (NYSE: USG) Average Daily Trading Volume

109,043 shares crossed the trading desk yesterday, below the norm, out of a total float 91,304,000. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to determine substantial volume accumulation or dissemination by institutional investors.

However, one day of heavy buy side trading is not enough to assert a trend. So market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

USG Corp. (NYSE: USG) 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 how they affect moving averages, traders can make well planned trades.

Trades for USG Corp. (NYSE: USG) have ranged from $15.85 – 30.84, and the stock now has a 50-day MA of $26.02 and 200-day MA of $27.28. Today’s last price is 10.28%% below the 52 week high of $30.84.

Earnings growth is a critical factor to look at when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more over the past 3 years.

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