athenahealth, Inc. (NASDAQ: ATHN) shares closed lower on Tuesday February 7 on lighter trade volume than normal after more analysts initiated coverage on the stock.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Analysts at Berenberg Bank initiated coverage on athenahealth, Inc. (NASDAQ: ATHN) stock, rating the company at Buy. With a rating of Buy on the stock, the company has a 52-week high of $143.84. As a means of comparison, a number of other analysts have issued reports on the stock recently, and the company has secured a consensus one-year price target of $129.39, higher than the opening price of $111.44, a difference of 11.76 percent. Changes in price targets are not uncommon as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Yesterday athenahealth, Inc. (NASDAQ: ATHN) shares last traded at $110.03, which is a decrease of $0.59 from the previous closing price. Opening at $111.44, they varied from $109.85 and $111.55 throughout the day.
athenahealth, Inc. (NASDAQ: ATHN) currently has a market cap of 4.35B.
athenahealth, Inc. (NASDAQ: ATHN) Average Daily Trading Volume
41,840 shares traded hands yesterday, 20 percent lower than normal, out of a total float 38,999,000. lower than normal. Look for trading volume to pick up in the coming days as momentum 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
athenahealth, Inc. (NASDAQ: ATHN) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for athenahealth, Inc. (NASDAQ: ATHN) have ranged from $90.11 – 143.845, and the stock now has a 50-day MA of $116.48 and 200-day MA of $115.67. Today’s last price is 23.51%% under the 52 week high of $143.84.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% for the past 3 years.
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