Ritchie Bros. Auctioneers Inc. (RBA) Stock Moves Down and Here’s Why

Raymond James Financial Inc. (Ritchie Bros. Auctioneers Inc.: 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 Raymond James Financial Inc. downgraded shares of Raymond James Financial Inc. (Ritchie Bros. Auctioneers Inc.: NYSE) from Outperform to Mkt Perform in a research note to investors today. The company currently has a rating of Mkt Perform on the stock. As a means of comparison, a number of other analysts have commented on the stock in recent days, and the company has secured a consensus one-year price target of $38.55, above the opening price of $34.13, a difference of 11.34 percent. Ritchie Bros. Auctioneers Inc. stock has a 52-week high of $39.96. Important and fundamental digressions in the company’s procedures, future vision or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the original recommendation.

Raymond James Financial Inc. (Ritchie Bros. Auctioneers Inc.: NYSE) shares last traded at $33.98, which represents a drop of $0.04 per share or -0.12% compared to the previous closing price. Opening at $34.13, they fluctuated from $33.88 and $34.32 throughout the day.

Raymond James Financial Inc. (Ritchie Bros. Auctioneers Inc.: NYSE) currently has a market cap of 3.62B.

Raymond James Financial Inc. (Ritchie Bros. Auctioneers Inc.: NYSE) Average Daily Trading Volume

61,645 shares crossed the trading desk yesterday, below the norm, out of a total float 106,435,000. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to determine large volume growth or distribution by institutional investors.

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

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

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

Raymond James Financial Inc. (Ritchie Bros. Auctioneers Inc.: 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 successful trades.

Trades for Raymond James Financial Inc. (Ritchie Bros. Auctioneers Inc.: NYSE) have ranged from $21.03 – 39.96, and the stock now has a 50-day MA of $37.53 and 200-day MA of $34.36. Today’s last price is 14.96%% under the 52 week high of $39.96.

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

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