Netflix, Inc. (NASDAQ: NFLX) shares rose in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
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 Wedbush reiterated an Underperform rating on shares of Netflix, Inc. (NASDAQ: NFLX) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Underperform on the stock, Netflix, Inc. has a 52-week high of $133.88. A number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $124.35, less than the opening price of $131.27, a difference of 9.47 percent. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Netflix, Inc. (NASDAQ: NFLX) opened at $131.27 yesterday trading between $130.30 and $132.22, and last traded at $131.36, which represents an increase of $0.41 over the previous closing price.
Netflix, Inc. (NASDAQ: NFLX) currently has a market cap of 56.37B.
Netflix, Inc. (NASDAQ: NFLX) Average Daily Trading Volume
1,023,048 shares traded hands yesterday, 57 percent below the average, out of a total float 422,222,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases 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 commonly 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 researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.
Netflix, Inc. (NASDAQ: NFLX) 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 Netflix, Inc. (NASDAQ: NFLX) have ranged from $79.95 – 133.8800, and the stock now has a 50-day MA of $123.08 and 200-day MA of $106.56. Today’s last price is 1.88%% under the 52 week high of $133.88.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% for the past 3 years.
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