Malibu Boats, Inc. (MBUU) Stock Moves Down and Here’s Why

Malibu Boats, Inc. (NASDAQ: MBUU) shares rose on Tuesday February 7 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.

Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.

S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.

Analysts at Zacks Investment Research downgraded shares of Malibu Boats, Inc. (NASDAQ: MBUU) from Hold to Sell in a research note to investors today. With a rating of Sell on the shares, Malibu Boats, Inc. has a 52-week high of $21.20. A number of other analysts have issued reports on the company recently, and Malibu Boats, Inc. has earned a consensus one-year price target of $22.83, higher than the opening price of $21.00, a difference of 10.83 percent. Material and major changes in the company’s operations, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the original recommendation.

Shares of Malibu Boats, Inc. (NASDAQ: MBUU) opened at $21.00 yesterday and traded in a range between, $20.90 and $21.20, and last traded at $21.08, which is a spike of $0.15 compared to the previous closing price.

Malibu Boats, Inc. (NASDAQ: MBUU) currently has a market cap of 375.88M.

Malibu Boats, Inc. (NASDAQ: MBUU) Average Daily Trading Volume

The stock’s average daily volume is 120,039 shares out of a total float 17,567,000 and some 17,090 shares traded hands yesterday, 116 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.

However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal 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 professional investors have teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Malibu Boats, Inc. (NASDAQ: MBUU) 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 successful trades.

With that in mind, Malibu Boats, Inc. (NASDAQ: MBUU) now has a 50-day MA of $18.60 and 200-day MA of $16.03. It has traded in a 52-week range between $11.38 – 21.20 and today’s last price is 0.57%% lower than the 52 week high of $21.20.

Earnings growth is a critical factor to research when investing in stocks and investors identify companies that have grown their earnings by at least 25% over 3 consecutive years.

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