Wix.com Ltd. (NASDAQ: WIX) shares rose in value on Wednesday January 18 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.
Analysts at Zacks Investment Research upgraded shares of Wix.com Ltd. (NASDAQ: WIX) from Sell to Hold today. The company currently has a rating of Hold on the stock. The one-year price target of $55.58 is higher than the opening price of $51.40, causing a number of other analysts to issue statements on the stock in recent days. Looking back over the last 52 weeks, Wix.com Ltd. stock has a high of $52.50. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Wix.com Ltd. (NASDAQ: WIX) opened at $51.40 yesterday and traded in a range between, $50.90 and $52.05, and last traded at $52.00, which is a jump of $0.95 over the previous closing price.
Wix.com Ltd. (NASDAQ: WIX) now has a market cap of 2.22B.
Wix.com Ltd. (NASDAQ: WIX) Average Daily Trading Volume
26,341 shares traded hands yesterday, 19 percent lower than normal, out of a total float 29,316,000. 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 instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
Wix.com Ltd. (NASDAQ: WIX) 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 Wix.com Ltd. (NASDAQ: WIX) have ranged from $14.79 – 52.50, and the stock now has a 50-day MA of $46.50 and 200-day MA of $42.17. Today’s last price is 0.95%% below the 52 week high of $52.50.
Earnings growth is an important factor to research when buying stocks and investors seek companies that have increased their earnings at least 25% or more for a 3 year period.
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