The Finish Line Inc. (NASDAQ: FINL) shares fell on Monday Dec 19 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, the Dow Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Shares of The Finish Line Inc. (NASDAQ: FINL) were downgraded by analysts at Citigroup Inc. in a note to their investors today. With a rating of Neutral on the shares, the company has a 52-week high of $24.52. The one-year price target of $23.71 is above the opening price of $21.76, resulting a fair amount of other analysts to comment on the company in recent days. Important and integral digressions in the company’s actions, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the initial recommendation.
The Finish Line Inc. (NASDAQ: FINL) shares last traded at $22.15, a decrease of $0.28 per share or -1.25% compared to the previous closing price. Opening at $21.76, they varied from $21.62 and $22.50 throughout the day.
The Finish Line Inc. (NASDAQ: FINL) currently has a market cap of 898.45M.
The Finish Line Inc. (NASDAQ: FINL) Average Daily Trading Volume
228,175 shares crossed the trading desk yesterday, below the norm, out of a total float 39,786,000. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to determine substantial volume aggregation or circulation by institutional investors.
As with all possible breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to show that fund managers and other professional investors are jumping in.
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 substantial teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
The Finish Line Inc. (NASDAQ: FINL) 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 The Finish Line Inc. (NASDAQ: FINL) have ranged from $15.74 – 24.52, and the stock now has a 50-day MA of $22.28 and 200-day MA of $21.65. Today’s last price is 9.67%% under the 52 week high of $24.52.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.