Facebook, Inc. (NASDAQ: FB) shares rose 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, in early trading today the Dow Jones Industrial Average DJIA, +0.19% rose 40 points, or 0.2%, to 19,929 while the S&P 500 SPX, +0.31% added 5 points to 2,275, a rise of 0.2%. The Nasdaq Composite Index COMP, +0.53% climbed 19 points, or 0.3%, to 5,567.
Raymond James Financial, Inc. analysts reiterated its Strong-Buy rating on Facebook, Inc. (NASDAQ: FB) in a note to investors, making it one of the more closely watched stocks on Wall Street. Raymond James Financial, Inc. currently has a rating of Strong-Buy on the shares. The one-year price target of $153.57 is higher than the opening price of $127.49, that has caused a fair amount of other analysts to issue statements on the company in recent days. Looking back over the last year, Facebook, Inc. stock has a high of $133.50. Typically, after analysts give a “reiterated rating” report on a stock, they will later issue other updates, such as a price target change.
Yesterday Facebook, Inc. (NASDAQ: FB) shares last traded at $128.24, a spike of $1.62 over the previous closing price. Opening at $127.49, they varied from $127.37 and $128.85 throughout the day.
Facebook, Inc. (NASDAQ: FB) now has a market cap of 369.61B.
Facebook, Inc. (NASDAQ: FB) Average Daily Trading Volume
5,850,664 shares traded hands yesterday, 46 percent below normal, out of a total float 2,296,136,000. 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.
While increased trading for one day will not mean much, however, 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 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 researching thousands of stocks. Thus, 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.
Trades for Facebook, Inc. (NASDAQ: FB) have ranged from $89.37 – 133.50, and the stock now has a 50-day MA of $118.78 and 200-day MA of $122.79. Today’s last price is 3.94%% below the 52 week high of $133.50.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings at least 25% or more over 3 consecutive years.
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