Facebook, Inc. (NASDAQ: FB) 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, 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.
J P Morgan Chase & Co analysts reiterated its Overweight rating on Facebook, Inc. (NASDAQ: FB) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Overweight on the shares, the company has a 52-week high of $133.50. The one-year price target of $154.24 is above the opening price of $125.61, that has caused a number of other analysts to issue statements on the stock recently. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Facebook, Inc. (NASDAQ: FB) opened at $125.61 yesterday and traded in a range between, $125.10 and $125.85, and last traded at $125.59, which represents a drop of $0.50 compared to the previous closing price.
Facebook, Inc. (NASDAQ: FB) now has a market cap of 361.97B.
Facebook, Inc. (NASDAQ: FB) Average Daily Trading Volume
2,965,058 shares traded hands yesterday, 20 percent below the average, out of a total float 2,296,049,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Facebook, Inc. (NASDAQ: FB) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Facebook, Inc. (NASDAQ: FB) now has a 50-day MA of $118.78 and 200-day MA of $122.79. It has traded in a 52-week range between $89.37 – 133.50 and today’s last price is 5.93%% lower than the 52 week high of $133.50.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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.