Ellie Mae Inc (NASDAQ: ELLI) shares fell in early trading today on lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Analysts at Morgan Stanley initiated coverage on Ellie Mae Inc (NASDAQ: ELLI) stock, starting the company at Equal Weight. With a rating of Equal Weight on the shares, Ellie Mae Inc has a 52-week high of $109.99. A number of other analysts have spoken on the company in recent days, and Ellie Mae Inc has earned a consensus one-year price target of $114.22, above the opening price of $84.39. After initiating coverage,, analysts and brokerage firms will subsequently publish periodic updates. Changes in price targets are not uncommon.
Yesterday Ellie Mae Inc (NASDAQ: ELLI) shares last traded at $83.20, a dip of $1.92 over the previous closing price. Opening at $84.39, they ranged from $83.19 and $84.74 throughout the day.
Ellie Mae Inc (NASDAQ: ELLI) currently has a market cap of 2.79B.
Ellie Mae Inc (NASDAQ: ELLI) Average Daily Trading Volume
The stock’s average daily volume is 679,067 shares out of a total float 32,718,000 and some 26,759 shares traded hands yesterday, 68 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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.
Institutional investors such as these have substantial teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
Ellie Mae Inc (NASDAQ: ELLI) 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.
With that in mind, Ellie Mae Inc (NASDAQ: ELLI) now has a 50-day MA of $83.60 and 200-day MA of $93.90. It has traded in a 52-week range between $57.88 – 109.99 and today’s last price is 24.36%% lower than the 52 week high of $109.99.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.