Financial

Analyst Coverage

Analyst Coverage

The number of analysts who observe a particular stock or other security. Large and well-known companies often have greater analyst coverage of their stocks than other companies. Greater analyst coverage often results in higher demand and therefore lower prices. Some value investors recommend buying securities with low analyst coverage because they could be undervalued.
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References in periodicals archive
This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, [click here.]:[http://thefly.com/streetResearch.php]
This paper examines star analyst coverage, investor overreaction, and stock price synchronicity in the Chinese and US markets.
In this study, we examine the impact of Fed's monetary policy stance on stock analyst coverage and analyst revisions in the U.S.
"What's different now is that there is no analyst coverage for companies under $100 million [in enterprise value]" unless you literally pay for it, he says.
Moreover, the CPA profession is proactively fulfilling its primary mission to protect the public interest as XBRL will improve investor access to the capital markets and increase analyst coverage.
--Media Penetration & Impact: Is blog commentary feeding or influencing mainstream news or financial analyst coverage?
The biggest reason these companies don't receive analyst coverage is because analysts spend time paging through financial information to find what they want.
This delayed price response is more pronounced for firms with relatively low analyst coverage, consistent with the premise that analyst coverage reflects factors that affect the information efficiency of the security market, such as the level of financial intermediation (Barth and Hutton 2000) or investor sophistication (Walther 1997), or a variety of other institutional features that impede complete arbitrage in security pricing (Bhushan 1994; Hong et al.
We examine whether abnormal analyst coverage influences the external financing and investment decisions of the firm.
Reuters estimates that since January 2002, 691 companies have lost analyst coverage. Moreover, a June 2005 Nasdaq press release stated that approximately 1,200 of its 3,200 listed companies and 35 percent of all public companies have no research coverage.
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