Zacks Investment Research (Knowles Corp.: 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 Zacks Investment Research downgraded shares of Zacks Investment Research (Knowles Corp.: NYSE) from Buy to Hold in a research note to investors today. With a rating of Hold on the shares, Knowles Corp. has a 52-week high of $17.49. As a means of comparison, a number of other analysts have issued reports on the company recently, and the company has secured a consensus one-year price target of $17.44, a decrease compared to the opening price of $17.46. Material and major changes in the company’s actions, future direction or industry can cause downgrades as the analysts feel that the future prospects for the security have weakened from the original recommendation.
Zacks Investment Research (Knowles Corp.: NYSE) shares last traded at $17.27, which represents a decrease of $0.10 per share or -0.55% compared to the previous closing price. Opening at $17.46, they ranged from $17.26 and $17.46 throughout the day.
Zacks Investment Research (Knowles Corp.: NYSE) currently has a market cap of 1.53B.
Zacks Investment Research (Knowles Corp.: NYSE) Average Daily Trading Volume
The stock’s average daily volume is 684,457 shares out of a total float 88,173,000 and some 41,440 shares traded hands yesterday, lower than the norm. Momentum traders often use swings in trading volume to determine heavy volume accumulation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship commonly 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. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Zacks Investment Research (Knowles Corp.: 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.
Traders are able to make make educated trades when they track the activity of professional investors.
Trades for Zacks Investment Research (Knowles Corp.: NYSE) have ranged from $9.68 – 17.490, and the stock now has a 50-day MA of $16.31 and 200-day MA of $14.80. Today’s last price is 1.29%% lower than the 52 week high of $17.49.
Earnings growth is a crucial factor to look at when investing in stocks and investors watch for companies that have raised their earnings by at least 25% for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.