Spirit Airlines, Inc. (NASDAQ: SAVE) shares slid back 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 Zacks Investment Research upgraded shares of Spirit Airlines, Inc. (NASDAQ: SAVE) from Hold to Buy today. With a rating of Buy on the stock, Spirit Airlines, Inc. has a 52-week high of $60.40. As a means of comparison, a number of other analysts have spoken on the company in recent days, and the company has secured a consensus one-year price target of $64.23, above the opening price of $56.12, a difference of 11.50 percent. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Spirit Airlines, Inc. (NASDAQ: SAVE) opened at $56.12 yesterday and traded in a range between, $55.51 and $56.92, and last traded at $55.86, which represents a decrease of $0.22 compared to the previous closing price.
Spirit Airlines, Inc. (NASDAQ: SAVE) currently has a market cap of 3.87B.
Spirit Airlines, Inc. (NASDAQ: SAVE) Average Daily Trading Volume
109,191 shares traded hands yesterday, 90 percent lower than the norm, out of a total float 69,079,000. 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.
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.
These professional investors retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.
Spirit Airlines, Inc. (NASDAQ: SAVE) 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, Spirit Airlines, Inc. (NASDAQ: SAVE) now has a 50-day MA of $56.86 and 200-day MA of $46.60. It has traded in a 52-week range between $35.17 – 60.40 and today’s last price is 7.52%% lower than the 52 week high of $60.40.
Earnings growth is an important factor to research when investing in stocks and investors identify companies that have raised their earnings at least 25% or more for a 3 year period.
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