Shares of Arrow Electronics Inc. (NYSE: ARW) were downgraded by analysts at Goldman Sachs Group Inc. in a note to their investors today.With a rating of Neutral on the stock, the company has a 52-week high of $68.07. A number of other analysts have commented on the company recently, and the company has secured a consensus one-year price target of $70.20, higher than the opening price of $61.60. Downgrades occur when analysts believe that the future prospects for the security have weakened from the original recommendation, usually because of a considerable and fundamental digression in the company’s actions, future vision or industry.
U.S. stocks on Monday closed mostly flat, after trading firmly higher, in a volatile session ahead of the start of a pair of closely watched central-bank policy meetings.
The Dow Jones Industrial Average DJIA, -0.02% closed down 3.63 points at 18,120.17.
The blue-chip index had been up by as much as 131 points earlier and traded within a 162-point range.
The S&P 500 SPX, +0.00% slipped 0.04 points to close at 2,139.12, after trading within an 18-point range
Meanwhile, the Nasdaq Composite Index COMP, -0.18% declined 9.54 points, or 0.2%, to close at 5,235.03.
Earlier, the index had been up by as many as 37 points and traded with a 58-point range
Yesterday Arrow Electronics Inc. (NYSE: ARW) shares last traded at $62.42, which represents a drop of $1.55 over the previous closing price. Opening at $61.60, they fluctuated from $61.58 and $63.00 throughout the day.
Arrow Electronics Inc. (NYSE: ARW) currently has a market cap of 5.70B.
206,331 shares traded hands yesterday, 60 percent lower than normal, out of a total float 85,116,000. Investors often use increases in trading volume to determine large volume growth or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive indicator 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 instituitional investors have substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
Traders are able to make make the best trades when they track the trading habits of professional investors.
Trades for Arrow Electronics Inc. (NYSE: ARW) have ranged from $45.23 – 68.07, and the stock now has a 50-day MA of $65.05 and 200-day MA of $63.79. Today’s last price is 0.08% lower than the 52 week high of $68.07.
Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have grown their earnings by at least 25% over 3 consecutive years.
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