Groupon, Inc. (NASDAQ: GRPN) shares rose on Monday February 13 on 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 U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Groupon, Inc. (NASDAQ: GRPN) had its Hold rating reiterated by equities researchers at Evercore ISI in a research note to investors. With a rating of Hold on the shares, the company has a 52-week high of $5.94. The one-year price target of $4.87 is above the opening price of $3.58, causing a number of other analysts to issue statements on the stock in recent days. Share prices sometimes get a boost to the upside when analysts reiterate coverage.
Shares of Groupon, Inc. (NASDAQ: GRPN) opened at $3.58 yesterday trading between $3.57 and $3.63, and last traded at $3.62, which represents a jump of $0.04 compared to the previous closing price.
Groupon, Inc. (NASDAQ: GRPN) now has a market cap of 2.08B.
Groupon, Inc. (NASDAQ: GRPN) Average Daily Trading Volume
904,316 shares traded hands yesterday, 20 percent lower than normal, out of a total float 400,862,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Groupon, Inc. (NASDAQ: GRPN) 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, Groupon, Inc. (NASDAQ: GRPN) now has a 50-day MA of $3.50 and 200-day MA of $4.45. It has traded in a 52-week range between $2.66 – 5.94 and today’s last price is 39.06%% lower than the 52 week high of $5.94.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings by at least 25% for a 3 year period.
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