TripAdvisor, Inc. (NASDAQ: TRIP) shares rose 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 TripAdvisor, Inc. (NASDAQ: TRIP) stock, starting the company at Neutral. With a rating of Neutral on the stock, the company has a 52-week high of $78.80. The one-year price target of $52.09 is above the opening price of $51.01, resulting a fair amount of other analysts to comment on the stock in recent days. Changes in price targets are not unusual as analysts and brokerage firms will re periodic updates after initiating coverage,.
Shares of TripAdvisor, Inc. (NASDAQ: TRIP) opened at $51.01 yesterday trading between $50.92 and $51.62, and last traded at $51.48, which is an increase of $0.17 over the previous closing price.
TripAdvisor, Inc. (NASDAQ: TRIP) currently has a market cap of 7.50B.
TripAdvisor, Inc. (NASDAQ: TRIP) Average Daily Trading Volume
The stock’s average daily volume is 2,467,380 shares out of a total float 114,285,000 and some 180,950 shares crossed the trading desk yesterday, 17 percent lower than the average. 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.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
TripAdvisor, Inc. (NASDAQ: TRIP) 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 successful trades.
With that in mind, TripAdvisor, Inc. (NASDAQ: TRIP) now has a 50-day MA of $48.38 and 200-day MA of $59.58. It has traded in a 52-week range between $45.63 – 78.80 and today’s last price is 34.67%% lower than the 52 week high of $78.80.
Earnings growth is a crucial factor to research when buying stocks and investors watch for companies that have raised their earnings by at least 25% for a 3 year period.
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