Quantum Corp. (QTM) shares fall following downgrade at Zacks Investment Research

Zacks Investment Research (Quantum Corp.: 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.

Shares of Zacks Investment Research (Quantum Corp.: NYSE) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Hold on the stock, the company has a 52-week high of $0.97. The one-year price target of $1.50 is above the opening price of $0.77, resulting a number of other analysts to comment on the stock recently. Important and major digressions in the company’s operations, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have dropped from the original recommendation.

Shares of Zacks Investment Research (Quantum Corp.: NYSE) opened at $0.77 on Tuesday trading between $0.76 and $0.78, and last traded at $0.76, which represents a decrease of $0.01 per share or -1.13% compared to the previous closing price.

Zacks Investment Research (Quantum Corp.: NYSE) now has a market cap of 206.18M.

Zacks Investment Research (Quantum Corp.: NYSE) Average Daily Trading Volume

162,467 shares traded hands yesterday, below the average, out of a total float 233,964,000. Investors often use increases in trading volume to determine substantial volume accumulation or circulation by institutional investors, so look for trading volume to pick up in the coming days.

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

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

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

Zacks Investment Research (Quantum Corp.: 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.

Traders are able to make make smarter trades when they follow the trading habits of professional investors.

Trades for Zacks Investment Research (Quantum Corp.: NYSE) have ranged from $0.35 – 0.9700, and the stock now has a 50-day MA of $0.85 and 200-day MA of $0.68. Today’s last price is 21.62%% below the 52 week high of $0.97.

Earnings growth is a critical factor to consider when investing in stocks and investors seek companies that have increased their earnings by at least 25% for the past 3 years.

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