Exa Corp. (EXA) Stock Down After Price Target Increase at Needham & Company LLC

Exa Corp. (NASDAQ: EXA) shares were down on Thursday Dec 22 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.

Meanwhile, U.S. stocks opened mostly flat on Thursday. The Dow Jones Industrial Average DJIA, -0.15% fell 15 points to 19,928, a drop of less than 0.1%. The S&P 500 SPX, -0.22% fell 1 point, or 0.05%, to 2,264. The Nasdaq Composite Index COMP, -0.23% fell 1 point to 5,470.21, essentially unchanged on the day.

Exa Corp. (NASDAQ: EXA) had its price target boosted by equities researchers at Needham & Company LLC from $17.00 to $18.00. The company currently has a rating of Buy on the stock. The one-year price target of $17.63 is above the opening price of $16.25, causing a number of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Exa Corp. stock has a high of $16.74.

Shares of Exa Corp. (NASDAQ: EXA) opened at $16.25 on Tuesday and has traded in a range between, $16.07 and $16.25, and last traded at $16.07, which represents a drop of $0.09 per share or -0.56% over the previous closing price.

Exa Corp. (NASDAQ: EXA) now has a market cap of 238.66M.

Exa Corp. (NASDAQ: EXA) Average Daily Trading Volume

The stock’s average daily volume is 51,956 shares out of a total float 12,826,000 and some 1,889 shares traded hands yesterday, lower than the norm. Swing traders often use swings in trading volume to determine substantial volume growth or circulation by institutional investors, so look for trading volume to pick up in the coming days.

While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Exa Corp. (NASDAQ: EXA) 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 traders to make those trends work in their favor and increase the number of winning trades.

Trades for Exa Corp. (NASDAQ: EXA) have ranged from $9.86 – 16.74, and the stock now has a 50-day MA of $14.78 and 200-day MA of $14.61. Today’s last price is 4.00%% lower than the 52 week high of $16.74.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings at least 25% or more for a 3 year period.

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