Winning Trades Based on Analyst Ratings for June 20
Eleven stocks were initiated with or upgraded to new bullish ratings - Buy, Outperform, Overweight - by analysts this morning. Four more were downgraded to bearish ratings - Sell, Underperform, and Underweight.
Piper Jaffray's call on Edwards Group Limited (NASDAQ: EVAC) was an initiation with a Buy rating and a price target of $13, producing the largest pop of the day. Piper Jaffray was the first of four initiations with a Buy rating among analysts as reported by Benzinga Professional, the other firms being Goldman Sachs, Deutsche Bank and Barclays Capital.
EVAC opened at $7.70 and reached a high of $8.25 within three minutes of open, for a 7.14 percent pop. Benzinga first reported on this rating upgrade at 6:04 AM. A preview with analyst color of this report is here.
The other ten trading signals weren't quite as high in terms of moves to respective share prices, although all worked in the first couple of hours of trading yielding a collective money-weighted gross return of 1.87 percent. Benzinga calculated this based on a maximum of $5,000 in capital committed to each long (shares bought) or short (shares sold) position. A trader acting on all eleven ratings signals would have needed just under $75,000 in trading capital. Exiting at highs of the day - the most optimistic scenario - would have produced just under $1,400 in gross profit. Commission cost would have been $150.
If the same trader held on to those positions until the time of this writing, his/her gain would have been just a third of a percent in gross terms. Maximum draw-down of all positions would have been a negative 0.35 percent, which occurred after stocks moved favorably with regard to respective trade directions.
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