Imperva Inc. (NYSE: IMPV) shares rose in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Shares of Imperva Inc. (NYSE: IMPV) were downgraded by analysts at BTIG Research in a note to their investors today. With a rating of Neutral on the stock, Imperva Inc. has a 52-week high of $77.99. The one-year price target of $52.22 is a decrease compared to the opening price of $53.28, causing a number of other analysts to comment on the company recently. Downgrades are more common when analysts feel that the future prospects for the security have diminished from the original recommendation, usually caused by a material and integral digression in the company’s operations, future outlook or industry.
Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.
The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.
The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.
The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298
Imperva Inc. (NYSE: IMPV) shares last traded at $53.98, which is a spike of $0.27 or 0.01 compared to the previous closing price. Opening at $53.28, they varied from $52.77 and $54.08 throughout the day.
Imperva Inc. (NYSE: IMPV) now has a market cap of 1.76B.
Imperva Inc.Trading Volume
297,225 shares crossed the trading desk yesterday, below the norm, out of a total float 26,695,000. Investors often use upticks in trading volume to determine large volume growth or circulation by institutional investors, so look for trading volume to pick up in the coming days.
However, just a day of heavy buy side trading is not enough to affirm a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.
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 researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Imperva Inc. 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 following the activity of these professional investors and how they influence moving averages, traders can make well planned trades.
Trades for Imperva Inc. (NYSE: IMPV) have ranged from $31.11 – 77.99, and the stock now has a 50-day MA of $46.99 and 200-day MA of $44.50. Today’s last price is 0.31% under the 52 week high of $77.99.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have grown their earnings by at least 25% for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.