Quintiles Transitional Holdings Inc. (Q) Stock Moves Down and Here’s Why

Quintiles Transitional Holdings Inc. (NYSE: Q) shares fell on Thursday Dec 1 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 opened with slight gains on Thursday.

The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.

The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Shares of Quintiles Transitional Holdings Inc. (NYSE: Q) were downgraded by analysts at Citigroup Inc. in a note to their investors today. With a rating of Market Perform on the shares, the company has a 52-week high of $81.45. A number of other analysts have commented on the company recently, and Quintiles Transitional Holdings Inc. has earned a consensus one-year price target of $83.82, higher than the opening price of $75.60. Downgrades occur when analysts consider that the future prospects for the security have weakened from the initial recommendation, often due to a material and integral digression in the company’s operations, future outlook or industry.

Quintiles Transitional Holdings Inc. (NYSE: Q) shares last traded at $74.25, which is a drop of $2.58 per share or -3.35% from the previous closing price. Opening at $75.60, they varied from $74.05 and $76.12 throughout the day.

Quintiles Transitional Holdings Inc. (NYSE: Q) now has a market cap of 18.28B.

Quintiles Transitional Holdings Inc. (NYSE: Q) Average Daily Trading Volume

843,802 shares crossed the trading desk yesterday, lower than the norm, out of a total float 182,213,000. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to determine substantial volume accumulation or dissemination 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 period 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.

Institutional investors such as these have 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.

Quintiles Transitional Holdings Inc. (NYSE: Q) 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 following the activity of these professional investors—and the moving averages they influence— traders are able to make make smarter trades.

Trades for Quintiles Transitional Holdings Inc. (NYSE: Q) have ranged from $55.01 – 81.450, and the stock now has a 50-day MA of $76.04 and 200-day MA of $73.44. Today’s last price is 8.84%% below the 52 week high of $81.45.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more over 3 consecutive years.

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