Analysts at Zacks Investment Research downgraded shares of Stein Mart Inc. (NASDAQ: SMRT) from Hold to 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 $9.67, higher than the opening price of $8.21, a difference of 1.46 percent.
Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
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, after taking the weekend to digest 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 investors are at peace with Yellen’s comments.
U.S. stocks have searched for direction so far today, with investors playing a waiting game in the run-up to the key jobs report later this week, as they weigh the prospects for an interest rate rise.
Shares of Stein Mart Inc. (NASDAQ: SMRT) opened at $8.21 and traded in a range between, $8.05 and $8.23 yesterday, and last traded at $8.12, which represents a change of $ -0.16 over the previous closing price.
Stein Mart Inc. (NASDAQ: SMRT) currently has a market cap of 380.17M
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind Stein Mart Inc. (NASDAQ: SMRT) now has a 50-day MA is $8.48 and 200-day MA is $7.48, and it has traded in a 52-week range between $5.61 – 10.980 and yesterday’s last price was -26.09 percent off the 52 week high of $10.98.
The stocks average daily volume is 135,803 shares out of a total float 31,081,000 of and some 24,914 shares crossed the trading desk yesterday, 68 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.
While increased trading for short periods will not mean much 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.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
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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