KapStone Paper and Packaging Corp. (NYSE: KS) 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.
Analysts at Wells Fargo & Co. downgraded shares of KapStone Paper and Packaging Corp. (NYSE: KS) from Outperform to Market Perform in a research note to investors today. Wells Fargo & Co. currently has a rating of Market Perform on the stock. The one-year price target of $22.89 is higher than the opening price of $20.16, that has caused a fair amount of other analysts to comment on the stock recently. Looking back over the last 52 weeks, KapStone Paper and Packaging Corp. stock has a high of $24.91. Downgrades occur when analysts feel that the future prospects for the security have diminished from the original recommendation, usually because of an important and integral change in the company’s procedures, future vision or industry.
Shares of KapStone Paper and Packaging Corp. (NYSE: KS) opened at $20.16 on Monday trading between $20.16 and $20.85, and last traded at $20.61, which is a decrease of $0.54 per share or -2.55% over the previous closing price.
KapStone Paper and Packaging Corp. (NYSE: KS) now has a market cap of 1.99B.
KapStone Paper and Packaging Corp. (NYSE: KS) Average Daily Trading Volume
145,268 shares traded hands yesterday, lower than normal, out of a total float 82,870,000. Momentum traders often use upticks in trading volume to identify heavy volume aggregation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, just a day of significant buy side trading is not enough to determine a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
KapStone Paper and Packaging Corp. (NYSE: KS) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, KapStone Paper and Packaging Corp. (NYSE: KS) now has a 50-day MA of $19.23 and 200-day MA of $16.49. It has traded in a 52-week range between $8.95 – 24.91 and today’s last price is 17.26%% lower than the 52 week high of $24.91.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% for the past 3 years.
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