Rovi Corp. (TIVO) stock falls, “Overweight” rating reiterated by JPMorgan Chase & Co. Analysts

Rovi Corp. (NASDAQ: TIVO) shares fell on Wednesday Nov 30 with 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, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.

The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.

The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.

JPMorgan Chase & Co. analysts reiterated its Overweight rating on Rovi Corp. (NASDAQ: TIVO) in a note to investors, making it one of the more closely watched stocks on Wall Street. JPMorgan Chase & Co. currently has a rating of Overweight on the shares. The one-year price target of $11.98 is a decrease compared to the opening price of $20.70, causing a number of other analysts to report on the stock recently. Looking back over the last year, Rovi Corp. stock has a high of $23.70. Share prices sometimes get a boost to the upside when analysts reiterate coverage.

Rovi Corp. (NASDAQ: TIVO) shares last traded at $20.40, which is a drop of $0.40 per share or -1.92% from the previous closing price. Opening at $20.70, they fluctuated from $20.15 and $20.75 throughout the day.

Rovi Corp. (NASDAQ: TIVO) currently has a market cap of 2.38B.

Rovi Corp. (NASDAQ: TIVO) Average Daily Trading Volume

The stock’s average daily volume is 1,225,740 shares out of a total float 108,898,000 and some 47,227 shares crossed the trading desk yesterday, lower than the norm. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to determine heavy volume accumulation or dissemination by institutional investors.

As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors retain substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re researching.

Rovi Corp. (NASDAQ: TIVO) 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.

Traders can make more impactful decisions on trades when they follow the trading habits of professional investors.

With that in mind, Rovi Corp. (NASDAQ: TIVO) now has a 50-day MA of $20.23 and 200-day MA of $19.04. It has traded in a 52-week range between $10.26 – 23.70 and today’s last price is 13.91%% lower than the 52 week high of $23.70.

Earnings growth is a crucial factor to research when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% over a 3 year period.

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