Zagg Inc. (ZAGG) Stock Moves Down and Here’s Why

Zagg Inc. (NASDAQ: ZAGG) shares traded mostly flat on in early trade Wednesday with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Shares of Zagg Inc. (NASDAQ: ZAGG) were downgraded by analysts at Zacks Investment Research in a note to their investors today. The company currently has a rating of Sell on the stock. The one-year price target of $11.15 is above the opening price of $7.70, resulting a number of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Zagg Inc. stock has a high of $12.74. Downgrades happen when analysts feel that the future prospects for the security have diminished from the original recommendation, usually because of a considerable and major change in the company’s procedures, future vision or industry.

U.S. stocks mostly climbed on Wednesday as crude-oil prices traded above $51 a barrel.

The Dow Jones Industrial Average DJIA, +0.18% gained 33 points, or 0.2% at 18,195, the S&P 500 index SPX, +0.07% advanced 2 points, or less than 0.1%, at 2,141, while the Nasdaq Composite Index COMP, -0.08% traded little-changed at 5,240.

U.S. stocks closed higher Tuesday as investors welcomed stronger-than-expected quarterly results from a host of companies

The S&P 500 index SPX, +0.62% finished up 13.10 points, or 0.6%, at 2,139.60, with all 11 main sectors trading higher.

The Dow Jones Industrial Average DJIA, +0.42% rose 75.54 points, or 0.4%, to close at 18,161.94.

Meanwhile, the Nasdaq Composite Index COMP, +0.85% added 44.01 points, or 0.9%, to close at 5,243.84.

Zagg Inc. (NASDAQ: ZAGG) shares last traded at $7.75. Opening at $7.70, they fluctuated from $7.70 and $7.78 throughout the day.

Zagg Inc. (NASDAQ: ZAGG) currently has a market cap of 217.95M.

Zagg Inc.Trading Volume

The stock’s average daily volume is 608,455 shares out of a total float 25,761,000 and some 7,256 shares traded hands yesterday, lower than normal. Investors often use increases in trading volume to determine substantial volume accumulation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.

However, one day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Zagg Inc. 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.

Traders are able to make make more impactful decisions on trades when they track the trading habits of professional investors.

With that in mind, Zagg Inc. (NASDAQ: ZAGG) now has a 50-day MA of $7.73 and 200-day MA of $6.86. It has traded in a 52-week range between $4.71 – 12.74 and today’s last price is 39.17%% lower than the 52 week high of $12.74.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have raised their earnings by at least 25% for a 3 year period.

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