Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Noah Holdings (Nasdaq: NOAH ) rose as much as 17% before closing up more than 14%. Earlier this week, analysts at Standard Chartered reiterated their "outperform" rating for the stock yet lowered their target price from $20 to $16 a share. The rating follows last week's bullish call by JPMorgan.
So what: The rating matters more than the price target. With the stock trading for less than $10 a share, a $16 target would equal a better than 60% gain in a market that hasn't produced many winners.
Now what: Yet investors shouldn't take today's action as a mandate. The Chinese wealth manager has endured wild stock-price swings in recent months, often opening more than 10% higher or lower and then paring the ensuing gains and losses by the close. Monday could very well see a similar reversion to the mean. Do you agree? Would you buy shares of Noah Holdings at current prices? Please weigh in using the comments box below.
Interested in more info on Noah Holdings? Add it to your watchlist.