ZELTIQ Aesthetics, Inc. (NASDAQ: ZLTQ) shares rose on Tuesday February 14 on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Analysts at Aegis downgraded shares of ZELTIQ Aesthetics, Inc. (NASDAQ: ZLTQ) from Buy to Hold in a research note to investors today. The company currently has a rating of Hold on the stock. A number of other analysts have commented on the company recently, and the company has earned a consensus one-year price target of $53.29, less than the opening price of $56.01. ZELTIQ Aesthetics, Inc. stock has a 52-week high of $56.18. Downgrades happen when analysts consider that the future prospects for the security have dropped from the original recommendation, often caused by an important and integral digression in the company’s procedures, future direction or industry.
Yesterday ZELTIQ Aesthetics, Inc. (NASDAQ: ZLTQ) shares last traded at $55.95, an increase of $0.02 from the previous closing price. Opening at $56.01, they ranged from $55.81 and $56.10 throughout the day.
ZELTIQ Aesthetics, Inc. (NASDAQ: ZLTQ) currently has a market cap of 2.24B.
ZELTIQ Aesthetics, Inc. (NASDAQ: ZLTQ) Average Daily Trading Volume
1,198,617 shares crossed the trading desk yesterday, 79 percent higher than the norm, out of a total float 39,495,000. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
ZELTIQ Aesthetics, Inc. (NASDAQ: ZLTQ) 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, ZELTIQ Aesthetics, Inc. (NASDAQ: ZLTQ) now has a 50-day MA of $43.85 and 200-day MA of $40.21. It has traded in a 52-week range between $18.41 – 56.18 and today’s last price is 0.41%% lower than the 52 week high of $56.18.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% for a 3 year period.
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