Carbonite Inc. (NASDAQ: CARB) shares rose in value yesterday on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Oppenheimer Holdings Inc. upgraded shares of Carbonite Inc. (NASDAQ: CARB) from Market Perform to Outperform today. Oppenheimer Holdings Inc. currently has a rating of Outperform on the shares. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and Carbonite Inc. has earned a consensus one-year price target of $13.63, lower than the opening price of $15.88. Carbonite Inc. stock has a 52-week high of $16.27. Usually, after analysts issue an upgrade report on a stock, they will subsequently issue periodic updates, often followed by a price target change.
Meanwhile, the Dow Jones Industrial Average DJIA, +0.49% rose 88.55 points, or 0.5% to close at 18,329.04, yesterday.
The S&P 500 index SPX, +0.46% closed up 9.92 points, or 0.5%, at 2,163.66
The Nasdaq Composite Index COMP, +0.69% gained 36.27 points, or 0.7%, to finish at 5,328.67.
In early trading today however, the Dow Jones Industrial Average DJIA, -0.63% dropped 103 points, or 0.6%, to 18,227.
The S&P 500 index SPX, -0.69% fell 12 points, or 0.6%, to 2,150, with all of its main sectors trading lower.
Meanwhile the Nasdaq Composite Index COMP, -0.79% fell 32 points, or 0.6%, to 5,295, dragged down by heavy losses in biotech stocks.
Carbonite Inc. (NASDAQ: CARB) shares last traded at $15.75, which represents an increase of $0.98 or 0.07 compared to the previous closing price. Opening at $15.88, they fluctuated from $15.13 and $16.27 throughout the day.
Carbonite Inc. (NASDAQ: CARB) currently has a market cap of 425.88M.
Carbonite Inc.Trading Volume
The stock’s average daily volume is 324,825 shares out of a total float 17,034,000 and some 475,394 shares traded hands yesterday, above the norm. Heavy volume accumulation by institutional investors may be on the horizon as the combination of substantial increases in trading volume and price appreciation can be determining factors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% greater than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Carbonite Inc. 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 marking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more impactful judgments on trades.
With that in mind, Carbonite Inc. (NASDAQ: CARB) now has a 50-day MA of $14.36 and 200-day MA of $10.84. It has traded in a 52-week range between $6.50 – 16.27 and today’s last price is 0.03% lower than the 52 week high of $16.27.
Earnings growth is a critical factor to look at when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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.