Alarm.com Holdings Inc. (NASDAQ: ALRM) shares rose on Thursday Dec 1 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, U.S. stocks opened with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Maxim Group initiated coverage on Alarm.com Holdings Inc. (NASDAQ: ALRM) stock, starting the company at Buy. With a rating of Buy on the shares, the company has a 52-week high of $34.43. A number of other analysts have spoken on the stock recently, and Alarm.com Holdings Inc. has secured a consensus one-year price target of $34.43, higher than the opening price of $30.00. Changes in price targets are not unheard of as analysts and brokerage firms will re periodic updates after initiating coverage,.
Shares of Alarm.com Holdings Inc. (NASDAQ: ALRM) opened at $30.00 on Tuesday and has traded in a range between, $29.75 and $30.03, and last traded at $29.93, which is a jump of $0.31 or 1.05% over the previous closing price.
Alarm.com Holdings Inc. (NASDAQ: ALRM) currently has a market cap of 1.38B.
Alarm.com Holdings Inc. (NASDAQ: ALRM) Average Daily Trading Volume
The stock’s average daily volume is 250,003 shares out of a total float 13,590,000 and some 67,318 shares crossed the trading desk yesterday, below 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 circulation by institutional investors.
As with all potential 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.
Professional investors such as these have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Alarm.com Holdings Inc. (NASDAQ: ALRM) 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 smarter trades when they follow the trading habits of professional investors.
With that in mind, Alarm.com Holdings Inc. (NASDAQ: ALRM) now has a 50-day MA of $29.65 and 200-day MA of $27.05. It has traded in a 52-week range between $14.00 – 34.43 and today’s last price is 13.07%% lower than the 52 week high of $34.43.
Earnings growth is an important factor to look at when buying stocks and investors identify companies that have raised their earnings by at least 25% for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.