Adobe Systems Inc. (NASDAQ: ADBE) 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 with a downgraded rating.
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.
Analysts at Zacks Investment Research downgraded shares of Adobe Systems Inc. (NASDAQ: ADBE) from Buy to Hold in a research note to investors today. With a rating of Hold on the shares, Adobe Systems Inc. has a 52-week high of $111.09. The one-year price target of $120.58 is higher than the opening price of $105.85, resulting a fair amount of other analysts to report on the stock in recent days. Material and major changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have dropped from the original recommendation.
Adobe Systems Inc. (NASDAQ: ADBE) shares last traded at $105.39, which represents a drop of $0.26 per share or -0.25% from the previous closing price. Opening at $105.85, they ranged from $105.10 and $106.36 throughout the day.
Adobe Systems Inc. (NASDAQ: ADBE) currently has a market cap of 52.40B.
Adobe Systems Inc. (NASDAQ: ADBE) Average Daily Trading Volume
The stock’s average daily volume is 2,410,150 shares out of a total float 495,422,000 and some 96,860 shares traded hands yesterday, below the norm. Investors often use upticks in trading volume to pinpoint heavy volume aggregation or circulation by institutional investors, so look for trading volume to pick up in the coming days.
However, one day of significant buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Adobe Systems Inc. (NASDAQ: ADBE) 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.
Traders are able to make make educated trades when they track the activity of professional investors.
With that in mind, Adobe Systems Inc. (NASDAQ: ADBE) now has a 50-day MA of $107.25 and 200-day MA of $101.16. It has traded in a 52-week range between $71.27 – 111.09 and today’s last price is 5.13%% lower than the 52 week high of $111.09.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% for the past 3 years.
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