Eastman Chemical Co. (NYSE: EMN) shares slid back in value Wednesday Dec 14 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Zacks Investment Research upgraded shares of Eastman Chemical Co. (NYSE: EMN) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $78.79. The one-year price target of $80.88 is above the opening price of $76.80, resulting a number of other analysts to report on the stock recently. Typically, after analysts assign an upgrade report on a stock, they will later issue recurring updates, usually followed by a price target change.
Eastman Chemical Co. (NYSE: EMN) shares last traded at $76.86, a decrease of $0.21 per share or -0.27% from the previous closing price. Opening at $76.80, they ranged from $76.73 and $77.36 throughout the day.
Eastman Chemical Co. (NYSE: EMN) now has a market cap of 11.28B.
Eastman Chemical Co. (NYSE: EMN) Average Daily Trading Volume
The stock’s average daily volume is 1,533,550 shares out of a total float 146,002,000 and some 154,083 shares traded hands yesterday, lower than the norm. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to identify substantial volume accumulation or circulation by institutional investors.
However, one day of heavy buy side trading is not enough to affirm a trend. As such, market traders will continue to watch 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.
Professional investors such as these retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Eastman Chemical Co. (NYSE: EMN) 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 successful trades.
With that in mind, Eastman Chemical Co. (NYSE: EMN) now has a 50-day MA of $73.81 and 200-day MA of $69.39. It has traded in a 52-week range between $56.03 – 78.79 and today’s last price is 2.45%% lower than the 52 week high of $78.79.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% for a 3 year period.
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