Zacks Investment Research (Old Dominion Freight Line Inc.: NASDAQ) 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 (Old Dominion Freight Line Inc.: NASDAQ) from Buy to Hold in a research note to investors today. With a rating of Hold on the shares, the company has a 52-week high of $91.69. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has earned a consensus one-year price target of $87.00, less than the opening price of $87.23, a difference of 9.99 percent. Downgrades are more likely when analysts consider that the future prospects for the security have diminished from the initial recommendation, often due to a material and major change in the company’s operations, future vision or industry.
Shares of Zacks Investment Research (Old Dominion Freight Line Inc.: NASDAQ) opened at $87.23 on Tuesday and has traded in a range between, $86.79 and $87.30, and last traded at $87.09, which is a dip of $0.12 per share or -0.13% over the previous closing price.
Zacks Investment Research (Old Dominion Freight Line Inc.: NASDAQ) now has a market cap of 7.18B.
Zacks Investment Research (Old Dominion Freight Line Inc.: NASDAQ) Average Daily Trading Volume
The stock’s average daily volume is 639,421 shares out of a total float 65,128,000 and some 11,455 shares crossed the trading desk yesterday, lower than normal. Investors often use swings in trading volume to identify large volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, a single day of significant buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Zacks Investment Research (Old Dominion Freight Line Inc.: NASDAQ) 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 spotting 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 (Old Dominion Freight Line Inc.: NASDAQ) have ranged from $48.92 – 91.690, and the stock now has a 50-day MA of $86.64 and 200-day MA of $72.29. Today’s last price is 5.02%% lower than the 52 week high of $91.69.
Earnings growth is a crucial factor to consider when buying stocks and investors seek companies that have been successful at growing their earnings at least 25% or more over the past 3 years.
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