Upland Software, Inc. (UPLD) Stock Moves Down and Here’s Why

Upland Software, Inc. (NASDAQ: UPLD) shares rose in early trading yesterday lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded 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 downgraded shares of Upland Software, Inc. (NASDAQ: UPLD) from Strong-Buy to Hold in a research note to investors today. With a rating of Hold on the shares, the company has a 52-week high of $10.60. A number of other analysts have commented on the company in recent days, and Upland Software, Inc. has secured a consensus one-year price target of $12.50, higher than the opening price of $10.27. Material and fundamental digressions in the company’s actions, future ision or industry can cause downgrades as the analysts consider that the future prospects for the security have diminished from the initial recommendation.

Shares of Upland Software, Inc. (NASDAQ: UPLD) opened at $10.27 yesterday trading between $10.17 and $10.46, and last traded at $10.19, which is a jump of $0.19 from the previous closing price.

Upland Software, Inc. (NASDAQ: UPLD) now has a market cap of 181.80M.

Upland Software, Inc. (NASDAQ: UPLD) Average Daily Trading Volume

17,156 shares traded hands yesterday, 59 percent lower than the average, out of a total float 7,461,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

While increased trading for short periods will not mean much 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these have teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Upland Software, Inc. (NASDAQ: UPLD) 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 Upland Software, Inc. (NASDAQ: UPLD) have ranged from $5.95 – 10.60, and the stock now has a 50-day MA of $9.13 and 200-day MA of $8.53. Today’s last price is 3.87%% below the 52 week high of $10.60.

Earnings growth is a crucial factor to look at when buying stocks and investors watch for companies that have increased their earnings at least 25% or more over 3 consecutive years.

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