Genesis Healthcare Inc. (NYSE: GEN) shares fell on Monday Nov 21 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, stocks were set to open up this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Shares of Genesis Healthcare Inc. (NYSE: GEN) were downgraded by analysts at RBC Capital Markets in a note to their investors today. With a rating of Sector Perform on the shares, Genesis Healthcare Inc. has a 52-week high of $5.14. The one-year price target of $2.63 is less than the opening price of $3.41, causing a fair amount of other analysts to report on the stock recently. Downgrades are more likely when analysts believe that the future prospects for the security have diminished from the original recommendation, often caused by a material and major digression in the company’s procedures, future direction or industry.
Genesis Healthcare Inc. (NYSE: GEN) shares last traded at $3.44, which is a dip of $0.04 per share or -1.05% compared to the previous closing price. Opening at $3.41, they varied from $3.29 and $3.47 throughout the day.
Genesis Healthcare Inc. (NYSE: GEN) currently has a market cap of 311.58M.
Genesis Healthcare Inc. (NYSE: GEN) Average Daily Trading Volume
The stock’s average daily volume is 171,314 shares out of a total float 41,227,000 and some 18,493 shares crossed the trading desk yesterday, below the norm. Swing traders often use upticks in trading volume to identify substantial volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.
While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re considering.
Genesis Healthcare Inc. (NYSE: GEN) 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 following the activity of these professional investors—and the moving averages they affect— traders can make educated trades.
With that in mind, Genesis Healthcare Inc. (NYSE: GEN) now has a 50-day MA of $2.81 and 200-day MA of $2.29. It has traded in a 52-week range between $1.38 – 5.1400 and today’s last price is 33.00%% lower than the 52 week high of $5.14.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have grown their earnings at least 25% or more over the past 3 years.
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