Sequential Brands Group Inc. (NASDAQ: SQBG) shares fell back in value Wednesday Dec 14 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Zacks Investment Research upgraded shares of Sequential Brands Group Inc. (NASDAQ: SQBG) from Sell to Hold today. With a rating of Hold on the shares, Sequential Brands Group Inc. has a 52-week high of $9.14. As a means of comparison, a number of other analysts have commented on the company in recent days, and Sequential Brands Group Inc. has earned a consensus one-year price target of $9.93, higher than the opening price of $5.14, a difference of 19.32 percent. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Sequential Brands Group Inc. (NASDAQ: SQBG) shares last traded at $5.14, which is a drop of $0.01 per share or -0.19% compared to the previous closing price. Opening at $5.14, they ranged from $5.04 and $5.20 throughout the day.
Sequential Brands Group Inc. (NASDAQ: SQBG) now has a market cap of 318.02M.
Sequential Brands Group Inc. (NASDAQ: SQBG) Average Daily Trading Volume
The stock’s average daily volume is 246,488 shares out of a total float 38,922,000 and some 40,061 shares crossed the trading desk yesterday, below the norm. Trading volume is likely to increase in the next few days as investors often use increases in trading volume to pinpoint large volume growth or dissemination by institutional investors.
While an increase in trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
Sequential Brands Group Inc. (NASDAQ: SQBG) 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 investors to make those trends work in their favor and increase the number of winning trades.
Trades for Sequential Brands Group Inc. (NASDAQ: SQBG) have ranged from $4.10 – 9.14, and the stock now has a 50-day MA of $5.65 and 200-day MA of $7.26. Today’s last price is 43.76%% under the 52 week high of $9.14.
Earnings growth is an important factor to research when buying stocks and investors look for companies that have been successful at growing their earnings by at least 25% over the past 3 years.
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