HanesBrands Inc. (NYSE: HBI) shares fell in early trade today on 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 opened fat this morning as investors wait on the minutes from the Federal Reserve’s latest policy meeting, which may confirm expectations for a December rate hike.
The S&P 500 was up 2 points, or 0.1%, to 2,138. The Dow Jones Industrial Average was flat at 18,128. The Nasdaq Composite began the session unchanged at 5,247.
Analysts at Cowen and Company downgraded shares of HanesBrands Inc. (NYSE: HBI) from Outperform to Market Perform in a research note to investors today. Cowen and Company currently has a rating of Market Perform on the stock. The one-year price target of $34.50 is above the opening price of $25.40, that has caused a fair amount of other analysts to report on the stock in recent days. Looking back over the last year, HanesBrands Inc. stock has a high of $33.24. Considerable and fundamental digressions in the company’s operations, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have diminished from the initial recommendation.
HanesBrands Inc. (NYSE: HBI) shares last traded at $25.38, a dip of $0.53 per share or -0.02 compared to the previous closing price. Opening at $25.40, they ranged from $25.28 and $25.74 throughout the day.
HanesBrands Inc. (NYSE: HBI) currently has a market cap of 9.59B.
HanesBrands Inc.Trading Volume
The stock’s average daily volume is 3,452,630 shares out of a total float 375,036,000 and some 1,548,954 shares crossed the trading desk yesterday, below the norm. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to pinpoint heavy volume accumulation or dissemination by institutional investors.
However, one day of heavy buy side trading is not enough to assert a trend. So market traders will continue to look for institutional sponsorship as a cue 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.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
HanesBrands Inc. 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.
Trades for HanesBrands Inc. (NYSE: HBI) have ranged from $23.25 – 33.24, and the stock now has a 50-day MA of $26.12 and 200-day MA of $26.78. Today’s last price is 0.24% under the 52 week high of $33.24.
Earnings growth is a critical factor to look at when investing in stocks and investors seek companies that have increased their earnings at least 25% or more over 3 consecutive years.
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