Ryerson Holding Corporation (NYSE: RYI) 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 Ryerson Holding Corporation (NYSE: RYI) were downgraded by analysts at Zacks Investment Research in a note to their investors today. Zacks Investment Research currently has a rating of Strong Sell on the stock. The one-year price target of $15.33 is higher than the opening price of $11.50, causing a fair amount of other analysts to issue statements on the stock in recent days. Looking back over the last 52 weeks, Ryerson Holding Corporation stock has a high of $19.71. Material and crucial changes in the company’s operations, future ision or industry can cause downgrades as the analysts feel that the future prospects for the security have diminished from the initial recommendation.
Shares of Ryerson Holding Corporation (NYSE: RYI) opened at $11.50 yesterday and traded in a range between, $11.30 and $11.55, and last traded at $11.45, a drop of $0.10 from the previous closing price.
Ryerson Holding Corporation (NYSE: RYI) now has a market cap of 425.16M.
Ryerson Holding Corporation (NYSE: RYI) Average Daily Trading Volume
12,747 shares traded hands yesterday, 78 percent below the norm, out of a total float 15,743,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
Ryerson Holding Corporation (NYSE: RYI) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Ryerson Holding Corporation (NYSE: RYI) have ranged from $2.67 – 19.71, and the stock now has a 50-day MA of $11.91 and 200-day MA of $12.10. Today’s last price is 41.91%% below the 52 week high of $19.71.
Earnings growth is an important factor to consider when investing in stocks and investors seek companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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