Pandora Media, Inc. (NYSE: P) shares rose in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
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.
Pandora Media, Inc. (NYSE: P) had its price target raised by equities researchers at FBR & Co from $12.00 to $14.00. With a rating of Market Perform on the shares, Pandora Media, Inc. has a 52-week high of $14.98. The one-year price target of $14.30 is above the opening price of $13.04, resulting a number of other analysts to issue statements on the company in recent days.
Yesterday Pandora Media, Inc. (NYSE: P) shares last traded at $12.75, which represents a spike of $0.75 over the previous closing price. Opening at $13.04, they fluctuated from $12.69 and $13.07 throughout the day.
Pandora Media, Inc. (NYSE: P) now has a market cap of 2.98B.
Pandora Media, Inc. (NYSE: P) Average Daily Trading Volume
5,643,681 shares traded hands yesterday, 72 percent below the norm, out of a total float 206,270,000. lower than normal. Look for trading volume to pick up in the coming days as momentum 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Pandora Media, Inc. (NYSE: P) 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, Pandora Media, Inc. (NYSE: P) now has a 50-day MA of $12.82 and 200-day MA of $12.90. It has traded in a 52-week range between $7.10 – 14.98 and today’s last price is 14.89%% lower than the 52 week high of $14.98.
Earnings growth is an important factor to look at when buying stocks and investors watch for companies that have increased their earnings by at least 25% for a 3 year period.
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