F5 Networks Inc. (NASDAQ: FFIV) shares rose in value Wednesday Dec 14 with lower 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 Citigroup Inc. upgraded shares of F5 Networks Inc. (NASDAQ: FFIV) from Neutral to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $146.48. As a means of comparison, a number of other analysts have issued reports on the company recently, and the company has secured a consensus one-year price target of $139.52, less than the opening price of $144.94, a difference of 9.64 percent. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Shares of F5 Networks Inc. (NASDAQ: FFIV) opened at $144.94 on Tuesday and has traded in a range between, $144.25 and $146.48, and last traded at $144.66, which represents an increase of $2.30 or 1.62% compared to the previous closing price.
F5 Networks Inc. (NASDAQ: FFIV) now has a market cap of 9.45B.
F5 Networks Inc. (NASDAQ: FFIV) Average Daily Trading Volume
The stock’s average daily volume is 777,009 shares out of a total float 65,118,000 and some 127,655 shares traded hands yesterday, lower than normal. Investors often use increases in trading volume to determine substantial volume growth or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
However, a single day of high volume buy side trading is not enough to affirm a trend. So market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
F5 Networks Inc. (NASDAQ: FFIV) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, F5 Networks Inc. (NASDAQ: FFIV) now has a 50-day MA of $139.07 and 200-day MA of $124.85. It has traded in a 52-week range between $86.03 – 146.48 and today’s last price is 1.24%% lower than the 52 week high of $146.48.
Earnings growth is a crucial factor to consider when investing in stocks and investors identify companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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