Fitbit Inc. (NYSE: FIT) shares rose in value Monday Dec 5 with slower 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 Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Zacks Investment Research upgraded shares of Fitbit Inc. (NYSE: FIT) from Sell to Hold today. With a rating of Hold on the stock, Fitbit Inc. has a 52-week high of $34.68. A number of other analysts have issued reports on the company in recent days, and Fitbit Inc. has secured a consensus one-year price target of $11.44, above the opening price of $8.18, a difference of 13.97 percent. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Fitbit Inc. (NYSE: FIT) shares last traded at $8.19, a spike of $0.05 or 0.60% compared to the previous closing price. Opening at $8.18, they ranged from $8.07 and $8.20 throughout the day.
Fitbit Inc. (NYSE: FIT) now has a market cap of 1.83B.
Fitbit Inc. (NYSE: FIT) Average Daily Trading Volume
1,849,055 shares crossed the trading desk yesterday, below the norm, out of a total float 134,759,000. Swing traders often use swings in trading volume to pinpoint large volume growth or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
However, just a day of significant buy side trading is not enough to affirm a trend. So market traders will continue to watch for institutional sponsorship as an indicator 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.
Professional investors such as these have teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Fitbit Inc. (NYSE: FIT) 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 tracking the activity of these professional investors and how they influence moving averages,it allows for traders to make more useful judgments on trades.
Trades for Fitbit Inc. (NYSE: FIT) have ranged from $8.07 – 34.6800, and the stock now has a 50-day MA of $10.67 and 200-day MA of $13.36. Today’s last price is 76.39%% below the 52 week high of $34.68.
Earnings growth is a critical factor to research when buying stocks and investors identify companies that have raised their earnings by at least 25% over a 3 year period.
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