Shopify Inc. (NYSE: SHOP) shares rose on Monday February 13 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
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.
Shopify Inc. (NYSE: SHOP) had its price target raised by equities researchers at Monness Crespi & Hardt from $50.00 to $63.00. With a rating of Buy on the shares, the company has a 52-week high of $57.16. A number of other analysts have commented on the stock in recent days, and Shopify Inc. has secured a consensus one-year price target of $51.61, a decrease compared to the opening price of $56.01, a difference of 9.08 percent.
Yesterday Shopify Inc. (NYSE: SHOP) shares last traded at $56.82, a jump of $1.60 from the previous closing price. Opening at $56.01, they ranged from $55.63 and $57.16 throughout the day.
Shopify Inc. (NYSE: SHOP) now has a market cap of 5.05B.
Shopify Inc. (NYSE: SHOP) Average Daily Trading Volume
476,207 shares traded hands yesterday, 74 percent below the average, out of a total float 66,394,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you’re considering.
Shopify Inc. (NYSE: SHOP) 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.
Trades for Shopify Inc. (NYSE: SHOP) have ranged from $18.58 – 57.1600, and the stock now has a 50-day MA of $48.94 and 200-day MA of $43.00. Today’s last price is 0.60%% lower than the 52 week high of $57.16.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have raised their earnings by at least 25% over the past 3 years.
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