WellCare Health Plans Inc. (WCG) Shares Slip, Investors Watching Closely, Here is Why

WellCare Health Plans Inc. (NYSE: WCG) shares fell on Tuesday Dec 13 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, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.

The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.

Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting

Analysts at Goldman Sachs Group Inc. downgraded shares of WellCare Health Plans Inc. (NYSE: WCG) from Buy to Neutral in a research note to investors today. The company currently has a rating of Neutral on the stock. A number of other analysts have spoken on the company in recent days, and WellCare Health Plans Inc. has earned a consensus one-year price target of $130.40, lower than the opening price of $138.88, a difference of 9.41 percent. WellCare Health Plans Inc. stock has a 52-week high of $141.88. Downgrades are more common 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 operations, future outlook or industry.

Shares of WellCare Health Plans Inc. (NYSE: WCG) opened at $138.88 on Tuesday trading between $137.31 and $139.71, and last traded at $138.62, which represents a dip of $1.97 per share or -1.40% compared to the previous closing price.

WellCare Health Plans Inc. (NYSE: WCG) now has a market cap of 6.14B.

WellCare Health Plans Inc. (NYSE: WCG) Average Daily Trading Volume

The stock’s average daily volume is 520,214 shares out of a total float 44,077,000 and some 112,139 shares traded hands yesterday, below the norm. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to pinpoint substantial volume accumulation or circulation by institutional investors.

While increased trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors have substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

WellCare Health Plans Inc. (NYSE: WCG) 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, WellCare Health Plans Inc. (NYSE: WCG) now has a 50-day MA of $128.19 and 200-day MA of $115.27. It has traded in a 52-week range between $69.16 – 141.88 and today’s last price is 2.30%% lower than the 52 week high of $141.88.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more for 3 consecutive years.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.

Leave a Reply

Your email address will not be published. Required fields are marked *