Michael Kors Holdings Ltd. (KORS) Stock Moves Down and Here’s Why

Michael Kors Holdings Ltd. (NYSE: KORS) shares rose 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 Michael Kors Holdings Ltd. (NYSE: KORS) were downgraded by analysts at Vetr Inc. in a note to their investors today. With a rating of Buy on the shares, the company has a 52-week high of $59.49. A number of other analysts have commented on the stock recently, and Michael Kors Holdings Ltd. has secured a consensus one-year price target of $53.17, above the opening price of $47.75, a difference of 11.09 percent. Material and crucial changes in the company’s procedures, future vision or industry can cause downgrades as the analysts feel that the future prospects for the security have dropped from the original recommendation.

Michael Kors Holdings Ltd. (NYSE: KORS) shares last traded at $47.95, an increase of $0.38 or 0.80% over the previous closing price. Opening at $47.75, they ranged from $47.67 and $48.49 throughout the day.

Michael Kors Holdings Ltd. (NYSE: KORS) now has a market cap of 7.86B.

Michael Kors Holdings Ltd. (NYSE: KORS) Average Daily Trading Volume

130,397 shares crossed the trading desk yesterday, below normal, out of a total float 157,399,000. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to pinpoint large volume accumulation or dissemination by institutional investors.

As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors have teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Michael Kors Holdings Ltd. (NYSE: KORS) 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, Michael Kors Holdings Ltd. (NYSE: KORS) now has a 50-day MA of $48.31 and 200-day MA of $48.63. It has traded in a 52-week range between $34.83 – 59.49 and today’s last price is 19.40%% lower than the 52 week high of $59.49.

Earnings growth is an important factor to research when buying stocks and investors seek companies that have increased their earnings at least 25% or more for a 3 year period.

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