Shares of Advanced Drainage Systems Inc. (NYSE: WMS) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Sell on the shares, Advanced Drainage Systems Inc. has a 52-week high of $32.50. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $24.29, higher than the opening price of $23.51, a difference of 10.41 percent. Downgrades occur when analysts feel that the future prospects for the security have weakened from the initial recommendation, often due to an important and fundamental digression in the company’s operations, future direction or industry.
U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.
The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.
The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.
Shares of Advanced Drainage Systems Inc. (NYSE: WMS) opened at $23.51 yesterday trading between $23.10 and $23.56, and last traded at $23.34, a spike of $0.02 from the previous closing price.
Advanced Drainage Systems Inc. (NYSE: WMS) currently has a market cap of 1.72B.
240,559 shares traded hands yesterday, 94 percent lower than the norm, out of a total float 33,949,000. Momentum traders often use increases in trading volume to identify substantial volume aggregation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
As with all possible breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to indicate that fund managers and other professional investors are jumping in.
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 it is good confirmation to see them taking a postion in a stock you’re considering.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Advanced Drainage Systems Inc. (NYSE: WMS) now has a 50-day MA of $24.54 and 200-day MA of $24.43. It has traded in a 52-week range between $17.72 – 32.50 and today’s last price is 0.28% lower than the 52 week high of $32.50.
Earnings growth is an important factor to consider when buying stocks and investors identify companies that have grown their earnings by at least 25% over 3 consecutive years.
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