SurModics Inc. (NASDAQ: SRDX) shares fell on Monday Nov 21 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, stocks were set to open higher this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Analysts at Barrington Research downgraded shares of SurModics Inc. (NASDAQ: SRDX) from Outperform to Market Perform in a research note to investors today. The company currently has a rating of Market Perform on the stock. The one-year price target of $32.56 is higher than the opening price of $25.55, resulting a fair amount of other analysts to comment on the stock recently. Looking back over the last 52 weeks, SurModics Inc. stock has a high of $30.75. Material and fundamental digressions in the company’s actions, future vision or industry can cause downgrades as the analysts feel that the future prospects for the security have diminished from the initial recommendation.
Shares of SurModics Inc. (NASDAQ: SRDX) opened at $25.55 on Monday and traded in a range between, $25.20 and $26.00, and last traded at $25.80, a dip of $0.35 per share or -1.34% over the previous closing price.
SurModics Inc. (NASDAQ: SRDX) now has a market cap of 337.67M.
SurModics Inc. (NASDAQ: SRDX) Average Daily Trading Volume
11,548 shares traded hands yesterday, lower than the norm, out of a total float 11,081,000. Momentum 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 increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.
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 substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
SurModics Inc. (NASDAQ: SRDX) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
Traders can make educated trades when they track the trading habits of professional investors.
Trades for SurModics Inc. (NASDAQ: SRDX) have ranged from $17.45 – 30.75, and the stock now has a 50-day MA of $27.34 and 200-day MA of $26.04. Today’s last price is 16.10%% under the 52 week high of $30.75.
Earnings growth is a critical factor to consider when investing in stocks and investors identify companies that have grown their earnings by at least 25% for 3 consecutive years.
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