Shares of Avnet Inc. (NYSE: AVT) were downgraded by analysts at Cross Research in a note to their investors today. With a rating of Sell on the stock, Avnet Inc. has a 52-week high of $46.95. The one-year price target of $44.63 is above the opening price of $40.36, resulting a fair amount of other analysts to report on the stock in recent days. Downgrades are more likely when analysts consider that the future prospects for the security have diminished from the original recommendation, usually because of an important and crucial digression in the company’s procedures, future vision 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.
Yesterday Avnet Inc. (NYSE: AVT) shares last traded at $40.33, a drop of $1.56 from the previous closing price. Opening at $40.36, they ranged from $40.10 and $41.08 throughout the day.
Avnet Inc. (NYSE: AVT) now has a market cap of 5.14B.
The stock’s average daily volume is 1,095,380 shares out of a total float 126,465,000 and some 2,324,198 shares traded hands yesterday, 106 percent higher than the norm. Excessive volume accumulation by institutional investors may be on the horizon as the combination of significant increases in trading volume and price appreciation can be indicative components.
While an increase in trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
Trades for Avnet Inc. (NYSE: AVT) have ranged from $37.10 – 46.95, and the stock now has a 50-day MA of $41.05 and 200-day MA of $41.58. Today’s last price is 0.14% below the 52 week high of $46.95.
Earnings growth is a crucial factor to look at when buying stocks and investors identify companies that have been successful at growing their earnings by at least 25% for 3 consecutive 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.