Netflix, Inc. (NASDAQ: NFLX) shares rose in value on Monday February 13 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
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.
Analysts at Vetr Inc. upgraded shares of Netflix, Inc. (NASDAQ: NFLX) from Strong Sell to Sell today. With a rating of Sell on the shares, the company has a 52-week high of $145.95. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $147.18, higher than the opening price of $145.19. Share prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Netflix, Inc. (NASDAQ: NFLX) shares last traded at $145.08, an increase of $0.26 from the previous closing price. Opening at $145.19, they ranged from $144.75 and $145.95 throughout the day.
Netflix, Inc. (NASDAQ: NFLX) now has a market cap of 62.44B.
Netflix, Inc. (NASDAQ: NFLX) Average Daily Trading Volume
759,474 shares traded hands yesterday, 72 percent below the average, out of a total float 423,499,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are researching.
Netflix, Inc. (NASDAQ: NFLX) 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, Netflix, Inc. (NASDAQ: NFLX) now has a 50-day MA of $135.32 and 200-day MA of $114.50. It has traded in a 52-week range between $84.50 – 145.95 and today’s last price is 0.60%% lower than the 52 week high of $145.95.
Earnings growth is a crucial factor to look at when investing in stocks and investors identify companies that have increased their earnings by at least 25% over a 3 year period.
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