Expedia, Inc. (NASDAQ: EXPE) shares rose on Friday January 13 on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.03% slipped 5.27 points to close 19,885.73, moving in a roughly 100-point range all session. For the week, the blue-chip index is off 0.4%.
U.S. financial markets will be closed Monday for Martin Luther King Jr. Day.
The S&P 500 index SPX, +0.18% added 4.20 points, or 0.2%, to end at 2,274.64 for a weekly loss of 0.1%, and the Nasdaq Composite Index COMP, +0.48% climbed 26.63 points, or 0.5%, to finish at 5,574.12, its sixth all-time closing high in seven trading sessions.
Analysts at Jefferies Group reiterated a Hold rating on shares of Expedia, Inc. (NASDAQ: EXPE) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Hold on the shares, Expedia, Inc. has a 52-week high of $133.55. The one-year price target of $141.07 is above the opening price of $118.01, causing a fair amount of other analysts to comment on the company recently. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Expedia, Inc. (NASDAQ: EXPE) shares last traded at $118.81, which represents a spike of $0.80 compared to the previous closing price. Opening at $118.01, they ranged from $117.81 and $120.44 throughout the day.
Expedia, Inc. (NASDAQ: EXPE) currently has a market cap of 17.82B.
Expedia, Inc. (NASDAQ: EXPE) Average Daily Trading Volume
2,414,069 shares traded hands yesterday, 82 percent higher than the average, out of a total float 120,097,000. 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 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 researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Expedia, Inc. (NASDAQ: EXPE) 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, Expedia, Inc. (NASDAQ: EXPE) now has a 50-day MA of $119.63 and 200-day MA of $116.66. It has traded in a 52-week range between $88.40 – 133.55 and today’s last price is 11.04%% lower than the 52 week high of $133.55.
Earnings growth is a critical factor to look at when buying stocks and investors watch for companies that have been successful at growing their earnings by at least 25% for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article 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.