lululemon athletica inc. (NASDAQ: LULU) shares fell 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.
Wedbush analysts reiterated its Outperform rating on lululemon athletica inc. (NASDAQ: LULU) in a note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Outperform on the stock. As a means of comparison, a number of other analysts have spoken on the stock recently, and the company has earned a consensus one-year price target of $73.35, higher than the opening price of $69.96. lululemon athletica inc. stock has a 52-week high of $81.81. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of lululemon athletica inc. (NASDAQ: LULU) opened at $69.96 yesterday and traded in a range between, $68.90 and $70.25, and last traded at $68.98, a decrease of $0.92 compared to the previous closing price.
lululemon athletica inc. (NASDAQ: LULU) currently has a market cap of 9.46B.
lululemon athletica inc. (NASDAQ: LULU) Average Daily Trading Volume
190,931 shares traded hands yesterday, 35 percent below the average, out of a total float 106,899,000. lower than normal. Look for trading volume to pick up in the coming days as momentum 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
lululemon athletica inc. (NASDAQ: LULU) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, lululemon athletica inc. (NASDAQ: LULU) now has a 50-day MA of $63.14 and 200-day MA of $67.09. It has traded in a 52-week range between $52.71 – 81.81 and today’s last price is 15.68%% lower than the 52 week high of $81.81.
Earnings growth is a crucial factor to consider when buying stocks and investors identify companies that have grown their earnings by at least 25% over a 3 year period.
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