RetailMeNot, Inc. (NASDAQ: SALE) shares fell in early trading today on lower trade volume than normal after more analysts initiated coverage on the 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.
Analysts at Credit Suisse Group initiated coverage on RetailMeNot, Inc. (NASDAQ: SALE) stock, starting the company at Underperform. Credit Suisse Group currently has a rating of Underperform on the shares. The one-year price target of $9.63 is above the opening price of $9.20, resulting a fair amount of other analysts to report on the company in recent days. Looking back over the last year, RetailMeNot, Inc. stock has a high of $12.93. Changes in price targets are not unheard of as analysts and brokerage firms will issue periodic updates after beginning or initiating coverage.
Yesterday RetailMeNot, Inc. (NASDAQ: SALE) shares last traded at $8.88, which represents a drop of $0.63 from the previous closing price. Opening at $9.20, they fluctuated from $8.85 and $9.20 throughout the day.
RetailMeNot, Inc. (NASDAQ: SALE) now has a market cap of 430.40M.
RetailMeNot, Inc. (NASDAQ: SALE) Average Daily Trading Volume
90,971 shares traded hands yesterday, 74 percent lower than normal, out of a total float 37,678,000. 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 have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
RetailMeNot, Inc. (NASDAQ: SALE) 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 traders to make those trends work in their favor and increase the number of winning trades.
Trades for RetailMeNot, Inc. (NASDAQ: SALE) have ranged from $5.52 – 12.930, and the stock now has a 50-day MA of $9.37 and 200-day MA of $9.60. Today’s last price is 31.36%% lower than the 52 week high of $12.93.
Earnings growth is a critical factor to consider when buying stocks and investors look for companies that have raised their earnings by at least 25% for 3 consecutive years.
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