Jamba Inc. (JMBA) Shares Slip, Investors Watching Closely, Here is Why

Jamba Inc. (NASDAQ: JMBA) shares rose yesterday on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Analysts at Zacks Investment Research downgraded shares of Jamba Inc. (NASDAQ: JMBA) from Hold to Sell in a research note to investors today. The company currently has a rating of Sell on the shares. A number of other analysts have commented on the stock recently, and Jamba Inc. has earned a consensus one-year price target of $13.50, above the opening price of $10.82, a difference of 12.48 percent. Jamba Inc. stock has a 52-week high of $14.84. Considerable and integral changes in the company’s actions, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the original recommendation.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.49% rose 88.55 points, or 0.5% to close at 18,329.04, yesterday.
The S&P 500 index SPX, +0.46% closed up 9.92 points, or 0.5%, at 2,163.66

The Nasdaq Composite Index COMP, +0.69% gained 36.27 points, or 0.7%, to finish at 5,328.67.

In early trading today however, the Dow Jones Industrial Average DJIA, -0.63% dropped 103 points, or 0.6%, to 18,227.
The S&P 500 index SPX, -0.69% fell 12 points, or 0.6%, to 2,150, with all of its main sectors trading lower.

Meanwhile the Nasdaq Composite Index COMP, -0.79% fell 32 points, or 0.6%, to 5,295, dragged down by heavy losses in biotech stocks.

Shares of Jamba Inc. (NASDAQ: JMBA) opened at $10.82 yesterday and traded in a range between, $10.78 and $10.82, and last traded at $10.82, a jump of $0.03 or 0.00 over the previous closing price.

Jamba Inc. (NASDAQ: JMBA) currently has a market cap of 165.05M.

Jamba Inc.Trading Volume

The stock’s average daily volume is 76,006 shares out of a total float 8,386,000 and some 1,069 shares traded hands yesterday, lower than the average. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to identify heavy volume accumulation or circulation by institutional investors.

As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to indicate 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 instituitional investors have 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.

Jamba 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 marking the activity of these professional investors—and the moving averages they affect— traders are able to make make educated trades.

With that in mind, Jamba Inc. (NASDAQ: JMBA) now has a 50-day MA of $10.80 and 200-day MA of $11.28. It has traded in a 52-week range between $9.94 – 14.84 and today’s last price is 0.27% lower than the 52 week high of $14.84.

Earnings growth is ann important factor to look at when investing in stocks and investors watch for companies that have been successful at growing their earnings by at least 25% for the past 3 years.

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