Scorpio Tankers Inc. (NASDAQ: STNG) shares fell in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Shares of Scorpio Tankers Inc. (NASDAQ: STNG) were downgraded by analysts at Clarkson Capital in a note to their investors today. With a rating of Neutral on the shares, the company has a 52-week high of $10.33. The one-year price target of $6.93 is higher than the opening price of $4.57, causing a number of other analysts to comment on the company in recent days. Considerable and major digressions in the company’s procedures, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have dropped from the initial recommendation.
Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.
The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.
The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.
The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298
Scorpio Tankers Inc. (NASDAQ: STNG) shares last traded at $4.57, a decrease of $0.07 per share or -0.01 from the previous closing price. Opening at $4.57, they varied from $4.54 and $4.70 throughout the day.
Scorpio Tankers Inc. (NASDAQ: STNG) now has a market cap of 736.70M.
Scorpio Tankers Inc.Trading Volume
The stock’s average daily volume is 3,009,320 shares out of a total float 133,282,000 and some 667,642 shares traded hands yesterday, lower than the average. Momentum traders often use upticks in trading volume to determine heavy volume aggregation or circulation by institutional investors, so look for trading volume to pick up in the coming days.
However, one day of high volume buy side trading is not enough to determine a trend. So market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.
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 that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
Scorpio Tankers Inc. 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 marking the activity of these professional investors—and the moving averages they influence—it allows for traders to make more impactful choices on trades.
Trades for Scorpio Tankers Inc. (NASDAQ: STNG) have ranged from $4.05 – 10.330, and the stock now has a 50-day MA of $4.92 and 200-day MA of $5.27. Today’s last price is 0.56% below the 52 week high of $10.33.
Earnings growth is ann important factor to look at when buying stocks and investors seek companies that have grown their earnings at least 25% or more over the past 3 years.
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