lululemon athletica inc. (NASDAQ: LULU) shares rose in value on Thursday February 2 on lower 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 DJIA, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.
Analysts at Goldman Sachs Group, Inc. (The) upgraded shares of lululemon athletica inc. (NASDAQ: LULU) from Conviction Sell to Sell today. With a rating of Sell on the stock, the company has a 52-week high of $81.81. The one-year price target of $73.34 is above the opening price of $67.00, causing a number of other analysts to report on the stock in recent days. Usually, after analysts publish an upgrade report on a stock, they will subsequently issue other revisions, such as a price target change.
Yesterday lululemon athletica inc. (NASDAQ: LULU) shares last traded at $67.04, an increase of $0.64 from the previous closing price. Opening at $67.00, they fluctuated from $66.41 and $67.08 throughout the day.
lululemon athletica inc. (NASDAQ: LULU) currently has a market cap of 9.19B.
lululemon athletica inc. (NASDAQ: LULU) Average Daily Trading Volume
The stock’s average daily volume is 2,130,240 shares out of a total float 106,899,000 and some 180,121 shares crossed the trading desk yesterday, 49 percent below the average. 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.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
lululemon athletica inc. (NASDAQ: LULU) 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 winning trades.
Trades for lululemon athletica inc. (NASDAQ: LULU) have ranged from $54.00 – 81.81, and the stock now has a 50-day MA of $67.23 and 200-day MA of $66.32. Today’s last price is 18.05%% below the 52 week high of $81.81.
Earnings growth is a crucial factor to consider when investing in stocks and investors seek companies that have increased their earnings by at least 25% for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.