eHealth, Inc. (EHTH) stock down despite upgrade at Craig Hallum

eHealth, Inc. (NASDAQ: EHTH) shares fell back in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

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 Craig Hallum upgraded shares of eHealth, Inc. (NASDAQ: EHTH) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $15.14. The one-year price target of $14.13 is above the opening price of $12.25, causing a number of other analysts to comment on the company recently. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.

Shares of eHealth, Inc. (NASDAQ: EHTH) opened at $12.25 yesterday and traded in a range between, $11.95 and $12.25, and last traded at $12.10, which represents a dip of $0.07 over the previous closing price.

eHealth, Inc. (NASDAQ: EHTH) now has a market cap of 221.93M.

eHealth, Inc. (NASDAQ: EHTH) Average Daily Trading Volume

6,054 shares crossed the trading desk yesterday, 27 percent below the average, out of a total float 12,113,000. 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.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.

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 watching their interests is a good way to ensure you are buying the right stocks.

eHealth, Inc. (NASDAQ: EHTH) 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 eHealth, Inc. (NASDAQ: EHTH) have ranged from $6.38 – 15.14, and the stock now has a 50-day MA of $10.43 and 200-day MA of $11.15. Today’s last price is 20.08%% below the 52 week high of $15.14.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% over a 3 year period.

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