Nordic American Tankers Ltd. (NYSE: NAT) shares fell in early trading 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.
Analysts at Clarkson Capital downgraded shares of Nordic American Tankers Ltd. (NYSE: NAT) from Buy to Neutral in a research note to investors today. With a rating of Neutral on the shares, the company has a 52-week high of $17.02. As a means of comparison, a number of other analysts have spoken on the company recently, and Nordic American Tankers Ltd. has earned a consensus one-year price target of $10.71, above the opening price of $10.06, a difference of 10.67 percent. Downgrades happen when analysts feel that the future prospects for the security have diminished from the original recommendation, often due to a considerable and crucial change in the company’s operations, future vision or industry.
Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.
The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.
The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.
The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298
Nordic American Tankers Ltd. (NYSE: NAT) shares last traded at $10.04, which is a dip of $0.07 per share or -0.01 compared to the previous closing price. Opening at $10.06, they ranged from $9.90 and $10.13 throughout the day.
Nordic American Tankers Ltd. (NYSE: NAT) currently has a market cap of 896.76M.
Nordic American Tankers Ltd.Trading Volume
The stock’s average daily volume is 1,669,940 shares out of a total float 85,948,000 and some 390,382 shares traded hands yesterday, lower than the average. Momentum traders often use swings in trading volume to identify heavy volume growth 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 affirm a trend. As such, market traders will continue to look for institutional sponsorship as an indicator 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 have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Nordic American Tankers Ltd. 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 the best trades when they follow the trading habits of professional investors.
With that in mind, Nordic American Tankers Ltd. (NYSE: NAT) now has a 50-day MA of $10.60 and 200-day MA of $13.29. It has traded in a 52-week range between $9.85 – 17.02 and today’s last price is 0.41% lower than the 52 week high of $17.02.
Earnings growth is a crucial factor to research when investing in stocks and investors identify companies that have raised their earnings by at least 25% over a 3 year period.
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