Analysts at Zacks Investment Research downgraded shares of Movado Group Inc. (NYSE: MOV) from Hold to Strong Sell in a research note to investors today. For comparison, a number of other analysts have commented on the stock recently, and the company currently has a consensus one-year price target of $26.50, higher than the opening price of $22.60, a difference of 3.90 percent.
Usually, after analysts publish an “reiterated rating” report on a stock, they will subsequently issue periodic updates, often followed by a price target change.
Downgrades occur when analysts feel that the future prospects for the security have weakened from the original recommendation, usually due to a material and fundamental change in the company’s operations, future outlook or industry.
Meanwhile, all three major indices posted gains on Monday, shaking off ambiguous comments made by Fed Chairwoman Janet Yellen on Friday concerning monetary policy, namely, interest rate hikes for the remainder of 2016.
The Dow Jones Industrial Average DJIA, +0.58% gained 107.59 points, or 0.6%, to close at 18,502.99.
The S&P 500 index SPX, +0.52% rose 11.34 points, or 0.5%, to settle at 2,180.38.
Meanwhile, the Nasdaq Composite Index COMP, +0.26% added 13.41 points, or 0.3%, to close at 5,232.33.
However not all traders are at peace with Yellen’s comments.
U.S. stocks have searched for direction thus far today, with investors waiting to see the key jobs report later this week, as they continue to consider the prospects for an interest rate rise.
Shares of Movado Group Inc. (NYSE: MOV) opened at $22.60 and traded in a range between, $22.47 and $22.88 yesterday, and last traded at $22.51, which represents a change of $ -0.25 over the previous closing price.
Movado Group Inc. (NYSE: MOV) now has a market cap of 522.03M
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number ofsuccessfultrades.
With that in mind Movado Group Inc. (NYSE: MOV) now has a 50-day MA is $22.91 and 200-day MA is $25.09, and it has traded in a 52-week range between $19.14 – 30.98 and yesterday’s last price was -27.34 percent off the 52 week high of $30.98.
The stocks average daily volume is 204,128 shares out of a total float 15,991,000 of and some 22,194 shares crossed the trading desk yesterday, 54 percent lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
Indeed, earnings growth is among the most important things to look in regards to stock investing and, accordingly, investors seek companies who have been successful at growing their earnings by at least 25 percent over a 3 year period.
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