LendingClub Corporation (NYSE: LC) shares rose in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
Analysts at Zacks Investment Research upgraded shares of LendingClub Corporation (NYSE: LC) from Hold to Buy today. Zacks Investment Research currently has a rating of Buy on the stock. The one-year price target of $6.53 is higher than the opening price of $5.67, causing a number of other analysts to comment on the company recently. Looking back over the last 52 weeks, LendingClub Corporation stock has a high of $9.80. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Yesterday LendingClub Corporation (NYSE: LC) shares last traded at $5.68, an increase of $0.02 from the previous closing price. Opening at $5.67, they ranged from $5.63 and $5.70 throughout the day.
LendingClub Corporation (NYSE: LC) now has a market cap of 2.24B.
LendingClub Corporation (NYSE: LC) Average Daily Trading Volume
114,968 shares traded hands yesterday, 86 percent lower than normal, out of a total float 353,369,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, conversely, 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts that investigate thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
LendingClub Corporation (NYSE: LC) 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 traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, LendingClub Corporation (NYSE: LC) now has a 50-day MA of $5.49 and 200-day MA of $5.32. It has traded in a 52-week range between $3.44 – 9.80 and today’s last price is 42.04%% lower than the 52 week high of $9.80.
Earnings growth is an important factor to consider when investing in stocks and investors identify companies that have grown their earnings by at least 25% for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.