Steelcase Inc. (NYSE: SCS) shares slid back in value 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 upgraded 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.
Analysts at Zacks Investment Research upgraded shares of Steelcase Inc. (NYSE: SCS) from Hold to Buy today. With a rating of Buy on the stock, Steelcase Inc. has a 52-week high of $18.14. As a means of comparison, a number of other analysts have issued reports on the stock recently, and Steelcase Inc. has earned a consensus one-year price target of $17.00, higher than the opening price of $16.20, a difference of 10.53 percent. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Steelcase Inc. (NYSE: SCS) shares last traded at $16.15, which is a drop of $0.05 over the previous closing price. Opening at $16.20, they fluctuated from $16.00 and $16.30 throughout the day.
Steelcase Inc. (NYSE: SCS) currently has a market cap of 1.89B.
Steelcase Inc. (NYSE: SCS) Average Daily Trading Volume
59,638 shares crossed the trading desk yesterday, 106 percent below normal, out of a total float 83,290,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.
Steelcase Inc. (NYSE: SCS) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Steelcase Inc. (NYSE: SCS) now has a 50-day MA of $16.75 and 200-day MA of $15.15. It has traded in a 52-week range between $11.88 – 18.14 and today’s last price is 10.97%% lower than the 52 week high of $18.14.
Earnings growth is an important factor to look at when investing in stocks and investors identify companies that have grown their earnings by at least 25% over the past 3 years.
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