Vipshop Holdings Limited (VIPS) Shares Tick Up after Upgrade at Zacks Investment Research

Vipshop Holdings Limited (NYSE: VIPS) shares rose in value on Wednesday January 25 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened

The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.

The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.

All three main indexes set intraday records shortly after the opening bell.

Analysts at Zacks Investment Research upgraded shares of Vipshop Holdings Limited (NYSE: VIPS) from Sell to Hold today. Zacks Investment Research currently has a rating of Hold on the shares. The one-year price target of $16.26 is higher than the opening price of $11.06, resulting a fair amount of other analysts to report on the stock recently. Looking back over the last year, Vipshop Holdings Limited stock has a high of $17.41. Usually, after analysts give an upgrade report on a stock, they will subsequently issue recurring updates, such as a price target change.

Shares of Vipshop Holdings Limited (NYSE: VIPS) opened at $11.06 yesterday and traded in a range between, $10.97 and $11.19, and last traded at $11.09, which represents a jump of $0.17 from the previous closing price.

Vipshop Holdings Limited (NYSE: VIPS) currently has a market cap of 6.45B.

Vipshop Holdings Limited (NYSE: VIPS) Average Daily Trading Volume

1,077,119 shares traded hands yesterday, 8 percent below the norm, out of a total float 421,335,000. 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.

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.

These instituitional investors retain teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.

Vipshop Holdings Limited (NYSE: VIPS) 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.

Trades for Vipshop Holdings Limited (NYSE: VIPS) have ranged from $10.21 – 17.41, and the stock now has a 50-day MA of $11.28 and 200-day MA of $13.30. Today’s last price is 36.30%% lower than the 52 week high of $17.41.

Earnings growth is an important factor to look at when buying stocks and investors watch for companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.

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