Paylocity Holding Corporation (NASDAQ: PCTY) shares fell on Tuesday February 14 on 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 opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Shares of Paylocity Holding Corporation (NASDAQ: PCTY) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Hold on the shares, the company has a 52-week high of $49.65. A number of other analysts have commented on the company recently, and the company has earned a consensus one-year price target of $43.64, higher than the opening price of $34.85, a difference of 12.61 percent. Downgrades are more likely when analysts feel that the future prospects for the security have diminished from the original recommendation, usually because of a considerable and major change in the company’s actions, future direction or industry.
Shares of Paylocity Holding Corporation (NASDAQ: PCTY) opened at $34.85 yesterday and traded in a range between, $34.41 and $34.85, and last traded at $34.60, which is a drop of $0.01 compared to the previous closing price.
Paylocity Holding Corporation (NASDAQ: PCTY) currently has a market cap of 1.78B.
Paylocity Holding Corporation (NASDAQ: PCTY) Average Daily Trading Volume
13,587 shares crossed the trading desk yesterday, 57 percent lower than normal, out of a total float 26,046,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these 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.
Paylocity Holding Corporation (NASDAQ: PCTY) 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 investors to make those trends work in their favor and increase the number of winning trades.
Trades for Paylocity Holding Corporation (NASDAQ: PCTY) have ranged from $25.00 – 49.65, and the stock now has a 50-day MA of $32.33 and 200-day MA of $38.61. Today’s last price is 30.31%% below the 52 week high of $49.65.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more for a 3 year period.
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