Barracuda Networks, Inc. (NYSE: CUDA) 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, raising the price target of stock.
Meanwhile in early trading, the Dow Jones Industrial Average DJIA, +0.31% rose 24 points, or 0.1%, to 19,883, while the S&P 500 index ESH7, +0.13% dipped less than 1 point to 2,268. The Nasdaq Composite COMP, +0.02% which reached its fourth-straight record close on Tuesday, rose 1 point to 5,553.
Barracuda Networks, Inc. (NYSE: CUDA) had its price target raised by equities researchers at Imperial Capital from $20.00 to $21.00. The company currently has a rating of Underperform on the shares. As a means of comparison, a number of other analysts have commented on the stock in recent days, and the company has secured a consensus one-year price target of $29.21, above the opening price of $24.10. Barracuda Networks, Inc. stock has a 52-week high of $26.69.
Shares of Barracuda Networks, Inc. (NYSE: CUDA) opened at $24.10 yesterday and traded in a range between, $24.04 and $25.00, and last traded at $25.00, a jump of $0.98 over the previous closing price.
Barracuda Networks, Inc. (NYSE: CUDA) currently has a market cap of 1.32B.
Barracuda Networks, Inc. (NYSE: CUDA) Average Daily Trading Volume
421,372 shares traded hands yesterday, 97 percent lower than normal, out of a total float 31,998,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day 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 instituitional investors retain teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
Barracuda Networks, Inc. (NYSE: CUDA) 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 Barracuda Networks, Inc. (NYSE: CUDA) have ranged from $9.44 – 26.69, and the stock now has a 50-day MA of $22.65 and 200-day MA of $22.43. Today’s last price is 6.33%% under the 52 week high of $26.69.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more over the past 3 years.
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