Ameriprise Financial Services Inc. (NYSE: AMP) shares fell on Monday Dec 19 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 DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Analysts at SunTrust Banks Inc. downgraded shares of Ameriprise Financial Services Inc. (NYSE: AMP) from Buy to Hold in a research note to investors today. With a rating of Hold on the shares, the company has a 52-week high of $119.32. As a means of comparison, a number of other analysts have commented on the stock recently, and Ameriprise Financial Services Inc. has secured a consensus one-year price target of $125.25, higher than the opening price of $111.65, a difference of 11.36 percent. Important and crucial digressions in the company’s operations, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the original recommendation.
Ameriprise Financial Services Inc. (NYSE: AMP) shares last traded at $110.29, which is a decrease of $1.44 per share or -1.29% from the previous closing price. Opening at $111.65, they varied from $110.05 and $111.65 throughout the day.
Ameriprise Financial Services Inc. (NYSE: AMP) currently has a market cap of 17.43B.
Ameriprise Financial Services Inc. (NYSE: AMP) Average Daily Trading Volume
The stock’s average daily volume is 1,196,810 shares out of a total float 157,474,000 and some 248,881 shares traded hands yesterday, lower than the norm. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to determine large volume growth or circulation by institutional investors.
While increased 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 delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Ameriprise Financial Services Inc. (NYSE: AMP) 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 more useful decisions on trades when they track the activity of professional investors.
Trades for Ameriprise Financial Services Inc. (NYSE: AMP) have ranged from $76.00 – 119.32, and the stock now has a 50-day MA of $107.95 and 200-day MA of $99.89. Today’s last price is 7.57%% lower than the 52 week high of $119.32.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more for a 3 year period.
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