SouFun Holdings Ltd. (NYSE: SFUN) 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.
Analysts at Zacks Investment Research downgraded shares of SouFun Holdings Ltd. (NYSE: SFUN) from Buy to Hold in a research note to investors today. Zacks Investment Research currently has a rating of Hold on the stock. A number of other analysts have spoken on the stock in recent days, and SouFun Holdings Ltd. has earned a consensus one-year price target of $6.60, higher than the opening price of $2.84, a difference of 22.84 percent. SouFun Holdings Ltd. stock has a 52-week high of $7.52. Important and fundamental digressions in the company’s procedures, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the initial recommendation.
Shares of SouFun Holdings Ltd. (NYSE: SFUN) opened at $2.84 on Tuesday trading between $2.76 and $2.93, and last traded at $2.89, which is a dip of $0.05 per share or -1.54% from the previous closing price.
SouFun Holdings Ltd. (NYSE: SFUN) currently has a market cap of 1.37B.
SouFun Holdings Ltd. (NYSE: SFUN) Average Daily Trading Volume
The stock’s average daily volume is 3,450,920 shares out of a total float 266,843,000 and some 2,291,635 shares traded hands yesterday, lower than the average. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to pinpoint large volume growth or dissemination by institutional investors.
However, one day of high volume buy side trading is not enough to determine a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
SouFun Holdings Ltd. (NYSE: SFUN) 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.
With that in mind, SouFun Holdings Ltd. (NYSE: SFUN) now has a 50-day MA of $3.34 and 200-day MA of $4.51. It has traded in a 52-week range between $2.76 – 7.520 and today’s last price is 61.64%% lower than the 52 week high of $7.52.
Earnings growth is an important factor to consider when investing in stocks and investors seek companies that have raised their earnings by at least 25% for 3 consecutive years.
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