SouFun Holdings Ltd. (NYSE: SFUN) shares fell back in value Wednesday Nov 30 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
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.
Analysts at Zacks Investment Research upgraded shares of SouFun Holdings Ltd. (NYSE: SFUN) from Hold to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $6.60 is above the opening price of $2.91, that has caused a fair amount of other analysts to issue statements on the stock in recent days. Looking back over the last 52 weeks, SouFun Holdings Ltd. stock has a high of $7.52. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
SouFun Holdings Ltd. (NYSE: SFUN) shares last traded at $2.85, a dip of $0.05 per share or -1.72% compared to the previous closing price. Opening at $2.91, they varied from $2.85 and $2.92 throughout the day.
SouFun Holdings Ltd. (NYSE: SFUN) currently has a market cap of 1.35B.
SouFun Holdings Ltd. (NYSE: SFUN) Average Daily Trading Volume
The stock’s average daily volume is 3,450,920 shares out of a total float 266,843,000 and some 786,711 shares traded hands yesterday, below the norm. Trading volume is likely to increase in the next few days as swing traders often use swings in trading volume to identify substantial volume aggregation or circulation by institutional investors.
As with all potential breakouts, investors watch 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.
Professional investors such as these have teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
SouFun Holdings Ltd. (NYSE: SFUN) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for SouFun Holdings Ltd. (NYSE: SFUN) have ranged from $2.80 – 7.52, and the stock now has a 50-day MA of $3.34 and 200-day MA of $4.51. Today’s last price is 62.10%% below the 52 week high of $7.52.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% for a 3 year period.
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