DexCom, Inc. (NASDAQ: DXCM) 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.
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.
Analysts at Wedbush reiterated an Outperform rating on shares of DexCom, Inc. (NASDAQ: DXCM) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Outperform on the stock, the company has a 52-week high of $96.38. The one-year price target of $82.71 is higher than the opening price of $67.29, that has caused a fair amount of other analysts to issue statements on the stock in recent days. Typically, after analysts give a “reiterated rating” report on a stock, they will subsequently issue other updates, such as a price target change.
Yesterday DexCom, Inc. (NASDAQ: DXCM) shares last traded at $68.72, which represents a jump of $1.68 from the previous closing price. Opening at $67.29, they varied from $66.55 and $69.14 throughout the day.
DexCom, Inc. (NASDAQ: DXCM) currently has a market cap of 5.81B.
DexCom, Inc. (NASDAQ: DXCM) Average Daily Trading Volume
246,471 shares traded hands yesterday, 102 percent lower than the norm, out of a total float 83,479,000. 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.
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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re considering.
DexCom, Inc. (NASDAQ: DXCM) 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 DexCom, Inc. (NASDAQ: DXCM) have ranged from $47.92 – 96.380, and the stock now has a 50-day MA of $64.83 and 200-day MA of $79.31. Today’s last price is 28.70%% under the 52 week high of $96.38.
Earnings growth is a critical factor to consider when buying stocks and investors identify companies that have grown their earnings at least 25% or more over 3 consecutive years.
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