Franklin Covey Co. (FC) shares fall following downgrade at Barrington Research

Barrington Research (Franklin Covey Co.: NYSE) shares fell on Wednesday Dec 28 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, U.S. stocks were little changed on Wednesday, as investors found few reasons to keep pushing shares higher towards the 20,000 mark.

The Dow Jones Industrial Average DJIA, -0.11% rose 3.1 points to 19,949, essentially unchanged on the day. The S&P 500 SPX, -0.39% lost 3 points, or 0.1%, to 2,266 while the Nasdaq Composite Index COMP, -0.59% slipped 6.4 points, or 0.1%, to 5,482.

Analysts at Barrington Research downgraded shares of Barrington Research (Franklin Covey Co.: NYSE) from Outperform to Market Perform in a research note to investors today. With a rating of Market Perform on the stock, Franklin Covey Co. has a 52-week high of $22.45. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and Franklin Covey Co. has secured a consensus one-year price target of $20.83, higher than the opening price of $20.35, a difference of 10.26 percent. Important and crucial digressions in the company’s operations, future vision or industry can cause downgrades as the analysts consider that the future prospects for the security have diminished from the original recommendation.

Shares of Barrington Research (Franklin Covey Co.: NYSE) opened at $20.35 on Tuesday trading between $20.30 and $20.45, and last traded at $20.30, which is a drop of $0.55 per share or -2.64% compared to the previous closing price.

Barrington Research (Franklin Covey Co.: NYSE) now has a market cap of 279.96M.

Barrington Research (Franklin Covey Co.: NYSE) Average Daily Trading Volume

12,661 shares traded hands yesterday, lower than the norm, out of a total float 9,571,000. Investors often use swings in trading volume to pinpoint heavy volume aggregation or distribution by institutional investors, so trading volume is likely to increase in the next few days.

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

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

Institutional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.

Barrington Research (Franklin Covey Co.: NYSE) 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 traders to make those trends work in their favor and increase the number of successful trades.

With that in mind, Barrington Research (Franklin Covey Co.: NYSE) now has a 50-day MA of $20.50 and 200-day MA of $17.49. It has traded in a 52-week range between $13.45 – 22.45 and today’s last price is 9.58%% lower than the 52 week high of $22.45.

Earnings growth is an important factor to look at when investing in stocks and investors watch for companies that have been successful at growing their earnings by at least 25% for a 3 year period.

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