Facebook Inc. (NASDAQ: FB) shares rose in value Tuesday Dec 13 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, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at Vetr Inc. upgraded shares of Facebook Inc. (NASDAQ: FB) from Buy to Strong-Buy today. The company currently has a rating of Strong-Buy on the stock. A number of other analysts have commented on the stock in recent days, and Facebook Inc. has secured a consensus one-year price target of $155.80, above the opening price of $117.86, a difference of 13.06 percent. Facebook Inc. stock has a 52-week high of $133.50. Typically, after analysts publish an upgrade report on a stock, they will later issue periodic updates, often followed by a price target change.
Shares of Facebook Inc. (NASDAQ: FB) opened at $117.86 on Tuesday and has traded in a range between, $117.61 and $119.44, and last traded at $119.31, which is an increase of $1.54 or 1.31% compared to the previous closing price.
Facebook Inc. (NASDAQ: FB) currently has a market cap of 343.87B.
Facebook Inc. (NASDAQ: FB) Average Daily Trading Volume
The stock’s average daily volume is 21,518,300 shares out of a total float 2,295,934,000 and some 5,085,975 shares crossed the trading desk yesterday, below the norm. Swing traders often use upticks in trading volume to identify heavy volume accumulation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
While an increase in trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Facebook Inc. (NASDAQ: FB) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Facebook Inc. (NASDAQ: FB) now has a 50-day MA of $121.79 and 200-day MA of $122.59. It has traded in a 52-week range between $89.37 – 133.50 and today’s last price is 10.63%% lower than the 52 week high of $133.50.
Earnings growth is an important factor to consider when buying stocks and investors seek companies that have grown their earnings at least 25% or more for a 3 year period.
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