Shares of Avnet Inc. (NYSE: AVT) were downgraded by analysts at Stifel Nicolaus in a note to their investors today. The company currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company 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. Important and crucial changes in the company’s procedures, future ision or industry can cause downgrades as the analysts feel that the future prospects for the security have dropped from the initial 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 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 Avnet Inc. (NYSE: AVT) shares last traded at $40.52, a decrease of $1.37 over the previous closing price. Opening at $40.36, they ranged from $40.10 and $40.92 throughout the day.
Avnet Inc. (NYSE: AVT) now has a market cap of 5.16B.
The stock’s average daily volume is 1,076,320 shares out of a total float 126,465,000 and some 518,252 shares crossed the trading desk yesterday, 53 percent below normal. Momentum traders often use increases in trading volume to identify substantial volume growth or circulation by institutional investors, so trading volume is likely to increase in the next few days.
However, one day of significant buy side trading is not enough to affirm a trend. So market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
By following the activity of these professional investors—and the moving averages they influence— traders can make the best 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% below the 52 week high of $46.95.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings at least 25% or more over 3 consecutive years.
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