Analysts at Cross Research downgraded shares of Avnet Inc. (NYSE: AVT) from Hold to Sell in a research note to investors today.Cross Research currently has a rating of Sell on the stock. A number of other analysts have spoken on the company in recent days, and Avnet Inc. has secured a consensus one-year price target of $44.63, higher than the opening price of $40.36. Avnet Inc. stock has a 52-week high of $46.95. considerable and fundamental digressions in the company’s procedures, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the original recommendation.
U.S. stocks on Monday closed essentially 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 gauge 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 Avnet Inc. (NYSE: AVT) shares last traded at $40.52, which is a decrease of $1.37 compared to the previous closing price. Opening at $40.36, they fluctuated from $40.10 and $40.92 throughout the day.
Avnet Inc. (NYSE: AVT) currently has a market cap of 5.16B.
518,252 shares crossed the trading desk yesterday, 53 percent lower than normal, out of a total float 126,465,000. Swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, just a day of high volume buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
By following the activity of these professional investors and how they affect moving averages, traders can make well planned trades.
Trades for Avnet Inc. (NYSE: AVT) have ranged from $37.10 – 46.95, and the stock now has a 50-day MA of $41.07 and 200-day MA of $41.60. Today’s last price is 0.14% under the 52 week high of $46.95.
Earnings growth is a critical factor to research when investing in stocks and investors seek companies that have been successful at growing their earnings by at least 25% for the past 3 years.
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