Yelp Inc. (NYSE: YELP) shares rose in value in early trading today on lighter 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 Yelp Inc. (NYSE: YELP) from Buy to Strong-Buy today. Vetr Inc. currently has a rating of Strong-Buy on the stock. As a means of comparison, a number of other analysts have spoken on the company in recent days, and the company has earned a consensus one-year price target of $41.31, above the opening price of $39.49. Yelp Inc. stock has a 52-week high of $43.36. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Yesterday Yelp Inc. (NYSE: YELP) shares last traded at $40.05, an increase of $0.74 over the previous closing price. Opening at $39.49, they fluctuated from $39.31 and $40.21 throughout the day.
Yelp Inc. (NYSE: YELP) now has a market cap of 3.14B.
Yelp Inc. (NYSE: YELP) Average Daily Trading Volume
235,946 shares crossed the trading desk yesterday, 32 percent lower than the norm, out of a total float 62,293,000. 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.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that investigate thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
Yelp Inc. (NYSE: YELP) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Yelp Inc. (NYSE: YELP) have ranged from $14.53 – 43.36, and the stock now has a 50-day MA of $37.49 and 200-day MA of $35.67. Today’s last price is 7.63%% lower than the 52 week high of $43.36.
Earnings growth is a crucial factor to consider when investing in stocks and investors seek companies that have increased their earnings at least 25% or more for a 3 year period.
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