Fortinet, Inc. (NASDAQ: FTNT) shares rose in value on Tuesday February 7 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
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 Zacks Investment Research upgraded shares of Fortinet, Inc. (NASDAQ: FTNT) from Hold to Strong-Buy today. Zacks Investment Research currently has a rating of Strong-Buy on the shares. The one-year price target of $40.27 is higher than the opening price of $38.00, resulting a number of other analysts to report on the stock recently. Looking back over the last 52 weeks, Fortinet, Inc. stock has a high of $38.33. Usually, after analysts assign an upgrade report on a stock, they will subsequently issue periodic revisions, often followed by a price target change.
Shares of Fortinet, Inc. (NASDAQ: FTNT) opened at $38.00 yesterday trading between $37.78 and $38.10, and last traded at $37.94, which represents a jump of $0.11 from the previous closing price.
Fortinet, Inc. (NASDAQ: FTNT) currently has a market cap of 6.58B.
Fortinet, Inc. (NASDAQ: FTNT) Average Daily Trading Volume
The stock’s average daily volume is 2,742,330 shares out of a total float 148,463,000 and some 221,585 shares traded hands yesterday, 62 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as investors 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
Fortinet, Inc. (NASDAQ: FTNT) 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 the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Fortinet, Inc. (NASDAQ: FTNT) now has a 50-day MA of $31.78 and 200-day MA of $32.98. It has traded in a 52-week range between $23.16 – 38.33 and today’s last price is 1.02%% lower than the 52 week high of $38.33.
Earnings growth is an important factor to look at when investing in stocks and investors watch for companies that have increased their earnings at least 25% or more for 3 consecutive years.
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