Twitter, Inc. (NYSE: TWTR) shares rose in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Vetr Inc. upgraded shares of Twitter, Inc. (NYSE: TWTR) from Buy to Strong-Buy today. The company currently has a rating of Strong-Buy on the stock. A number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $16.92, a decrease compared to the opening price of $17.24. Twitter, Inc. stock has a 52-week high of $25.25. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Twitter, Inc. (NYSE: TWTR) opened at $17.24 yesterday trading between $17.19 and $17.35, and last traded at $17.31, which represents an increase of $0.14 compared to the previous closing price.
Twitter, Inc. (NYSE: TWTR) currently has a market cap of 12.26B.
Twitter, Inc. (NYSE: TWTR) Average Daily Trading Volume
1,728,975 shares crossed the trading desk yesterday, 87 percent lower than the average, out of a total float 612,335,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Twitter, Inc. (NYSE: TWTR) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Twitter, Inc. (NYSE: TWTR) have ranged from $13.73 – 25.25, and the stock now has a 50-day MA of $17.95 and 200-day MA of $18.41. Today’s last price is 31.45%% below the 52 week high of $25.25.
Earnings growth is an important factor to look at when buying stocks and investors seek companies that have raised their earnings at least 25% or more for the past 3 years.
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