Twilio Inc (NASDAQ: TWLO) shares rose on Monday January 23 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, U.S. stocks flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
Twilio Inc (NASDAQ: TWLO) had its Outperform rating reiterated by equities researchers at William Blair in a research note to investors. The company currently has a rating of Outperform on the stock. The one-year price target of $38.44 is above the opening price of $28.38, causing a fair amount of other analysts to report on the company recently. Looking back over the last 52 weeks, Twilio Inc stock has a high of $70.96. Stock prices sometimes get a boost to the upside when analysts reiterate coverage.
Yesterday Twilio Inc (NASDAQ: TWLO) shares last traded at $28.64, which represents a jump of $0.26 from the previous closing price. Opening at $28.38, they ranged from $28.26 and $28.80 throughout the day.
Twilio Inc (NASDAQ: TWLO) now has a market cap of 2.50B.
Twilio Inc (NASDAQ: TWLO) Average Daily Trading Volume
486,358 shares crossed the trading desk yesterday, 16 percent lower than the average, out of a total float 31,325,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks 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 validation to see them taking a postion in a stock you’re considering.
Twilio Inc (NASDAQ: TWLO) 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 successful trades.
With that in mind, Twilio Inc (NASDAQ: TWLO) now has a 50-day MA of $29.44 and 200-day MA of $42.33. It has traded in a 52-week range between $23.66 – 70.96 and today’s last price is 59.64%% lower than the 52 week high of $70.96.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have increased their earnings by at least 25% over 3 consecutive years.
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