Urban Outfitters Inc. (NASDAQ: URBN) shares fell on Wednesday Nov 23 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, in early trading, the Dow Jones Industrial Average DJIA, -0.03% fell 3.5 points to 19,019, essentially unchanged on the day. The S&P 500 SPX, -0.26% fell 7 points, or 0.3%, to 2,196, while the Nasdaq Composite Index COMP, -0.48% shed 34 points to 5,353, a loss of 0.6%.
Shares of Urban Outfitters Inc. (NASDAQ: URBN) were downgraded by analysts at Vetr Inc. in a note to their investors today. With a rating of Sell on the shares, the company has a 52-week high of $40.80. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and Urban Outfitters Inc. has earned a consensus one-year price target of $37.22, above the opening price of $35.00, a difference of 10.52 percent. Considerable and major changes in the company’s operations, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the initial recommendation.
Urban Outfitters Inc. (NASDAQ: URBN) shares last traded at $35.39, a dip of $3.62 per share or -9.28% compared to the previous closing price. Opening at $35.00, they fluctuated from $35.00 and $36.49 throughout the day.
Urban Outfitters Inc. (NASDAQ: URBN) currently has a market cap of 4.15B.
Urban Outfitters Inc. (NASDAQ: URBN) Average Daily Trading Volume
The stock’s average daily volume is 2,282,260 shares out of a total float 89,469,000 and some 2,645,033 shares traded hands yesterday, above the norm. Heavy volume accumulation by institutional investors may be on the horizon as the combination of significant gains in trading volume and price growth can be deciding components.
As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to indicate 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.
These professional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Urban Outfitters Inc. (NASDAQ: URBN) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more useful decisions on trades.
Trades for Urban Outfitters Inc. (NASDAQ: URBN) have ranged from $20.06 – 40.8000, and the stock now has a 50-day MA of $35.27 and 200-day MA of $31.93. Today’s last price is 13.26%% below the 52 week high of $40.80.
Earnings growth is a crucial factor to research when buying stocks and investors seek companies that have raised their earnings at least 25% or more over 3 consecutive years.
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