LogMein Inc. (NASDAQ: LOGM) shares rose on Thursday December 29 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, U.S. stocks were little changed in early trade Thursday. The S&P 500 SPX, +0.04% rose 0.1% to 2,252, while the Dow DJIA, +0.04% advanced 16 points to 19,850. The Nasdaq Composite COMP, -0.04% was virtually flat at 5,439.
Shares of LogMein Inc. (NASDAQ: LOGM) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Hold on the stock, LogMein Inc. has a 52-week high of $110.10. The one-year price target of $104.00 is higher than the opening price of $97.85, resulting a number of other analysts to comment on the company in recent days. Important and crucial digressions in the company’s procedures, future vision or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the original recommendation.
Shares of LogMein Inc. (NASDAQ: LOGM) opened at $97.85 on Tuesday and has traded in a range between, $97.35 and $99.13, and last traded at $97.98, which represents an increase of $0.48 or 0.49% over the previous closing price.
LogMein Inc. (NASDAQ: LOGM) currently has a market cap of 2.50B.
LogMein Inc. (NASDAQ: LOGM) Average Daily Trading Volume
5,509 shares traded hands yesterday, lower than normal, out of a total float 24,529,000. Trading volume is likely to increase in the next few days as investors often use swings in trading volume to identify heavy volume aggregation or circulation by institutional investors.
While increased trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
LogMein Inc. (NASDAQ: LOGM) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By marking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective choices on trades.
With that in mind, LogMein Inc. (NASDAQ: LOGM) now has a 50-day MA of $101.42 and 200-day MA of $85.80. It has traded in a 52-week range between $35.00 – 110.100 and today’s last price is 11.01%% lower than the 52 week high of $110.10.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.
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