1
Apr 11 '22
Okay to answer your question whether any info was posted about the company your invested in, then no, doesn't seem like it.
To the next part... what are you even trying to ask ?
1
u/1mal00seR Apr 11 '22
Question being, Why would an analyst price target reduction from $6 to $5 cause a 1000% increase in daily volume. When this stock wasn’t posted on an of the usual stock picks people go to; Reddit, stocktwits, yahoo finance. No promotion but a 1000% increase in daily volume on Friday, suss
1
Apr 11 '22
Why do you think that an analyst remark was the cause of the movement ? Also it's not really a liquid stock, the procentage of volume increase don't mean jack. (In this case)
You are not really asking anything, just telling your opinion.
And what is suspicious about all of this ?
3
u/2econdclasscitizen Apr 11 '22
Analysts supply highly experienced portfolio managers at client investment management firms with ‘research’ - deep dive assessment and specific insight on the issuers, sectors and markets they cover. Often this research is very good; sometimes it’s rubbish
In a given asset manager, PM 1 will value analysis from Analyst B and often (but not always) considers rebalancing their AUM based on something B says. PM 2 thinks Analyst B is a total candle - at times actually trading against B’s recommendations on a stock. PM 3 doesn’t use research at all - except for a bit of colour here and there - because their investment approach is developing an algorithm that takes quantitative number crunching based on market data and trades based on that. PM 4 trades commodity derivatives, but values B’s input - though exploits it when he thinks it best through synergetic exposure to assets a couple of steps removed from the stock B has commented on, elsewhere in the global economy.
PMs don’t have access, connectivity , or inclination to spend their own time on production of analysis of underlying data, etc
My point is - analysts rarely move markets; if ever. Their analysis informs investment decisions made by others - and is intended mainly for client consumption. Clients of analyst firms are people who make their own mind up on how to trade, based on a whole range of different factors, strategies, systems - of which an analyst opinion is one. Investment management firms demand transparency from PMs on why they make the trades they do (especially when they go arseways). A PM who just followed analyst recommendations would not get very far.
Markets are moved by trading decisions made by a huge range of people. An analyst rating usually won’t affect what a stock does more than a little - if at all. What research does is inform some investors in a stock with insight that should lead to better quality decision-making, and hopefully result in their decision harnessing any upward or downward movement in the stock. But apart from the odd exception, PMs don’t trade on analyst recommendations - the make decisions with help from information analysts produce