Allied World Assurance Co. (NYSE: AWH) Stock Gets Downgraded at Zacks Investment Research

Analysts at Zacks Investment Research downgraded shares of Allied World Assurance Co. (NYSE: AWH) from Strong-Buy to Hold in a research note to investors today. Zacks Investment Research currently has a rating of Hold on the stock. The one-year price target of $42.33 is higher than the opening price of $40.07, resulting a fair amount of other analysts to comment on the company in recent days. Looking back over the last 52 weeks, Allied World Assurance Co. stock has a high of $42.10. considerable and major changes in the company’s actions, future ision or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the initial recommendation.

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 Allied World Assurance Co. (NYSE: AWH) opened at $40.07 yesterday and traded in a range between, $39.93 and $40.31, and last traded at $40.12, which is a spike of $0.13 over the previous closing price.

Allied World Assurance Co. (NYSE: AWH) currently has a market cap of 3.50B.

The stock’s average daily volume is 545,569 shares out of a total float 84,760,000 and some 396,448 shares crossed the trading desk yesterday, 19 percent below the average. Swing traders often use upticks in trading volume to pinpoint substantial volume aggregation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.

While higher trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are researching.

By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

With that in mind, Allied World Assurance Co. (NYSE: AWH) now has a 50-day MA of $40.26 and 200-day MA of $37.22. It has traded in a 52-week range between $30.29 – 42.10 and today’s last price is 0.05% lower than the 52 week high of $42.10.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings by at least 25% for 3 consecutive years.

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