Ocwen Financial Corporation (OCN) stock slips after being downgraded at Zacks Investment Research

Zacks Investment Research (Ocwen Financial Corporation: 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 (Ocwen Financial Corporation: NYSE) from Buy to Hold in a research note to investors today. With a rating of Hold on the shares, Ocwen Financial Corporation has a 52-week high of $7.47. The one-year price target of $4.33 is a decrease compared to the opening price of $5.66, that has caused a number of other analysts to report on the stock recently. Downgrades happen when analysts believe that the future prospects for the security have dropped from the original recommendation, often due to an important and integral change in the company’s operations, future direction or industry.

Zacks Investment Research (Ocwen Financial Corporation: NYSE) shares last traded at $5.62, which represents a decrease of $0.05 per share or -0.88% from the previous closing price. Opening at $5.66, they fluctuated from $5.57 and $5.68 throughout the day.

Zacks Investment Research (Ocwen Financial Corporation: NYSE) now has a market cap of 696.82M.

Zacks Investment Research (Ocwen Financial Corporation: NYSE) Average Daily Trading Volume

The stock’s average daily volume is 3,496,420 shares out of a total float 94,268,000 and some 182,624 shares traded hands yesterday, lower than the norm. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify large volume accumulation or distribution by institutional investors.

While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.

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

Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.

Zacks Investment Research (Ocwen Financial Corporation: 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.

By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

Trades for Zacks Investment Research (Ocwen Financial Corporation: NYSE) have ranged from $1.29 – 7.47, and the stock now has a 50-day MA of $5.22 and 200-day MA of $3.46. Today’s last price is 24.77%% lower than the 52 week high of $7.47.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more over the past 3 years.

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