NetEase Inc. (NASDAQ: NTES) shares rose in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Credit Agricole SA upgraded shares of NetEase Inc. (NASDAQ: NTES) from Underperform to Outperform today. With a rating of Outperform on the stock, NetEase Inc. has a 52-week high of $254.48. A number of other analysts have commented on the stock in recent days, and the company has secured a consensus one-year price target of $241.36, a decrease compared to the opening price of $243.74. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
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
NetEase Inc. (NASDAQ: NTES) shares last traded at $246.32, an increase of $5.54 or 0.02 from the previous closing price. Opening at $243.74, they varied from $243.31 and $247.87 throughout the day.
NetEase Inc. (NASDAQ: NTES) currently has a market cap of 32.30B.
NetEase Inc.Trading Volume
231,368 shares crossed the trading desk yesterday, lower than normal, out of a total float 73,035,000. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to identify substantial volume growth or circulation by institutional investors.
While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
NetEase 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 the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, NetEase Inc. (NASDAQ: NTES) now has a 50-day MA of $225.52 and 200-day MA of $180.89. It has traded in a 52-week range between $121.02 – 254.48 and today’s last price is 0.03% lower than the 52 week high of $254.48.
Earnings growth is a critical factor to consider when buying stocks and investors seek companies that have raised their earnings by at least 25% over the past 3 years.
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