Monotype Imaging Holdings Inc. (NASDAQ: TYPE) shares rose in value in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
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 J P Morgan Chase & Co upgraded shares of Monotype Imaging Holdings Inc. (NASDAQ: TYPE) from Underweight to Neutral today. With a rating of Neutral on the shares, Monotype Imaging Holdings Inc. has a 52-week high of $25.37. The one-year price target of $24.75 is above the opening price of $22.00, resulting a number of other analysts to report on the company recently. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Yesterday Monotype Imaging Holdings Inc. (NASDAQ: TYPE) shares last traded at $21.65, which is a jump of $0.20 over the previous closing price. Opening at $22.00, they varied from $21.65 and $22.15 throughout the day.
Monotype Imaging Holdings Inc. (NASDAQ: TYPE) now has a market cap of 865.50M.
Monotype Imaging Holdings Inc. (NASDAQ: TYPE) Average Daily Trading Volume
29,630 shares crossed the trading desk yesterday, 110 percent lower than normal, out of a total float 39,220,000. 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.
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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Monotype Imaging Holdings Inc. (NASDAQ: TYPE) 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 winning trades.
Trades for Monotype Imaging Holdings Inc. (NASDAQ: TYPE) have ranged from $17.31 – 25.37, and the stock now has a 50-day MA of $19.96 and 200-day MA of $21.12. Today’s last price is 14.66%% below the 52 week high of $25.37.
Earnings growth is an important factor to consider when buying stocks and investors identify companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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