After looking for stocks with higher betas, we can see that Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) has a current beta of 1.26. The beta of a stock is typically used as a historical volatility indicator in relation to the overall market. Beta is a measurement of the stock price fluctuation, and may be used to gauge how fast the price may rise or fall. Beta compares the returns of company stock to return of the market as a whole. A beta of 1 would indicate that the stock price moves with the market. A beta below 1 might indicate that the stock is less volatile than the market. A beta above 1 indicates that the stock price is more volatile than the market in theory. Checking in on current price action, company shares had recently touched 40.89. From the session open, shares have moved -1.97%. Investors will be watching to see how the stock reacts to market influences over the next few weeks. As we near the halfway point of the calendar year, investors may be trying to figure out if now is the time to get in on the name, or whether to wait for a better opportunity.
Investors studying the fundamentals might be conducting in-depth company research before deciding when to purchase a particular stock. The investor checklist may include studying the scope of a company’s competitive industry advantage, examining company management, and trying to get a general feel if the stock is valued properly. Once the decision is made that the company is a good fit for the portfolio, it may be wise to assess whether or not current conditions and price levels indicate proper levels for share purchase. The timing of purchasing a researched stock obviously comes with some level of trepidation. Investors will only know in the future whether they got in at the right price. A stock that looks very attractive today may not be as attractive in the future. Sometimes the investor will just have to trust their research and instinct when purchasing shares.
We are also noting that Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) was recently seen trading -16.21% away from the 50-day high and -0.05% separated from the 50-day low. Taking a broader view, the current separation from the 52-week high is -35.88%, and the distance from the 52-week low is currently -0.05%. Let’s also look quickly at some analyst views on company shares. At the time of writing, the consensus target price for the company is $54.66. The consensus recommendation provided by covering sell-side analysts is currently 2.30. This number lands on a scale from 1 to 5. Following this scale, a rating of a 1 or a 2 would indicate a consensus Buy recommendation. A rating of 4 or 5 would represent a consensus Sell recommendation. A rating of 3 would indicate a Hold recommendation.
After a recent check, Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) shares have been seen trading -8.50% away from the 20-day moving average. Zooming out to the 50-day, we can see that shares are currently trading -8.26% off of that mark. Looking at the 200-day moving average, shares have been trading -18.27% away from that value. The moving average uses the sum of all of the previous closing prices over a certain time period and divides the result by the number of prices used in the calculation. Many investors will opt to use multiple time periods when examining moving averages. Moving averages are considered to be lagging indicators, and they may prove to be very useful for spotting peaks and troughs. They may also be used to help the trader calculate sturdy support and resistance levels for the stock.
Investors may be closely monitoring historical stock price performance in order to examine what has been happening with company shares. Let’s take a look at some of the numbers for Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM). Stock price performance for the past week is currently noted at -4.73%. If we look back to the beginning of the calendar year, shares have performed -30.67%. Looking back over the past full-year, shares have performed -30.58%. Over the past month, the stock has performed -15.60%. Over the last quarter, the stock has performed -12.44%. Briefly looking at some recent volatility numbers, we can see that shares have been noted at 2.93% for the week, and 2.63% for the past month.
From time to time, investors may need to decide when to sell a winner. This can be one of the tougher portfolio decisions to make. When a winning stock keeps rising, it can be tough to part with it. Investors may become hesitant to sell because they don’t want to miss out on greater profits in the future. Sometimes this strategy will work, and other times investors may be watching all previous gains evaporate. Being able to sell a winner can provide obvious profits, and it may even be a confidence booster for the average investor. On the flip side, investors may also be faced with the decision of when to sell a loser. Even the most researched trades can go sour. Being able to detach from the trade mentally can end up saving the investor more grief down the line. Holding onto a stock with the hopes of a giant turnaround can be a recipe for portfolio disaster. Being able to cut losses is just as much a part of the process as being able to cash in winners. Learning from mistakes and being able to wipe the slate clean can help the investor be better prepared for future endeavors in the markets.
