Analysts at Zacks Investment Research downgraded shares of WD-40 Co. (NASDAQ: WDFC) 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 $108.67, lower than the opening price of $119.88, a difference of -11.21 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, 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 anxious to see the key jobs report later this week, as they weigh the prospects for an interest rate rise.
Shares of WD-40 Co. (NASDAQ: WDFC) opened at $119.88 and traded in a range between, $118.93 and $119.95 yesterday, and last traded at $119.14, which represents a change of $ -0.36 over the previous closing price.
WD-40 Co. (NASDAQ: WDFC) now has a market cap of 1.70B
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind WD-40 Co. (NASDAQ: WDFC) now has a 50-day MA is $117.31 and 200-day MA is $110.58, and it has traded in a 52-week range between $81.68 – 125.00 and yesterday’s last price was -4.69 percent off the 52 week high of $125.00.
The stocks average daily volume is 98,233 shares out of a total float 13,749,000 of and some 8,254 shares crossed the trading desk yesterday, 13 percent lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day 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 taking a postion in a stock you are researching.
Earnings growth is an important factor to look at when buying stocks and investors look for companies that have grown their earnings at least 25% or more for the past 3 years.
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