2U Inc. (NASDAQ: TWOU) shares rose on Thursday Nov 17 with 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, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
2U Inc. (NASDAQ: TWOU) had its Buy rating reiterated by equities researchers at Pacific Crest in a research note to investors. With a rating of Buy on the shares, the company has a 52-week high of $38.91. The one-year price target of $40.90 is higher than the opening price of $35.14, resulting a number of other analysts to issue statements on the stock recently. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
2U Inc. (NASDAQ: TWOU) shares last traded at $35.42, which represents a spike of $0.50 or 1.43% over the previous closing price. Opening at $35.14, they varied from $35.14 and $35.48 throughout the day.
2U Inc. (NASDAQ: TWOU) now has a market cap of 1,666.90B.
2U Inc. (NASDAQ: TWOU) Average Daily Trading Volume
33,324 shares traded hands yesterday, lower than normal, out of a total float 43,375,000. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to pinpoint large volume accumulation or circulation by institutional investors.
While an increase in trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional 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 researching.
2U Inc. (NASDAQ: TWOU) 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.
Traders can make more useful judgments on trades when they follow the activity of professional investors.
Trades for 2U Inc. (NASDAQ: TWOU) have ranged from $14.94 – 38.91, and the stock now has a 50-day MA of $35.22 and 200-day MA of $32.79. Today’s last price is 8.97%% below the 52 week high of $38.91.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings at least 25% or more over a 3 year period.
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