Autohome Inc. (NYSE: ATHM) shares rose in value Wednesday Dec 14 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, U.S. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Deutsche Bank AG upgraded shares of Autohome Inc. (NYSE: ATHM) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $37.17. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $28.80, higher than the opening price of $27.80. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Autohome Inc. (NYSE: ATHM) shares last traded at $27.11, which is a spike of $0.37 or 1.38% compared to the previous closing price. Opening at $27.80, they varied from $27.05 and $27.80 throughout the day.
Autohome Inc. (NYSE: ATHM) currently has a market cap of 3.11B.
Autohome Inc. (NYSE: ATHM) Average Daily Trading Volume
87,013 shares crossed the trading desk yesterday, below normal, out of a total float 38,851,000. Investors often use upticks in trading volume to identify substantial volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
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 just refers to 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. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Autohome Inc. (NYSE: ATHM) 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— traders are able to make make the best trades.
Trades for Autohome Inc. (NYSE: ATHM) have ranged from $19.32 – 37.17, and the stock now has a 50-day MA of $25.69 and 200-day MA of $24.40. Today’s last price is 27.06%% under the 52 week high of $37.17.
Earnings growth is a critical factor to research when investing in stocks and investors identify companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.
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