Facebook, Inc. (NASDAQ: FB) 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.
Facebook, Inc. (NASDAQ: FB) had its Overweight rating reiterated by equities researchers at J P Morgan Chase & Co in a research note to investors. With a rating of Overweight on the stock, Facebook, Inc. has a 52-week high of $133.50. A number of other analysts have commented on the stock in recent days, and the company has earned a consensus one-year price target of $153.57, higher than the opening price of $127.49. Stock prices sometimes get a jump to the upside when analysts reiterate coverage.
Yesterday Facebook, Inc. (NASDAQ: FB) shares last traded at $128.34, which represents a spike of $1.72 compared to the previous closing price. Opening at $127.49, they ranged from $127.37 and $129.27 throughout the day.
Facebook, Inc. (NASDAQ: FB) now has a market cap of 369.90B.
Facebook, Inc. (NASDAQ: FB) Average Daily Trading Volume
24,884,325 shares traded hands yesterday, 8 percent higher than normal, out of a total float 2,296,136,000. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
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 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, Facebook, Inc. (NASDAQ: FB) now has a 50-day MA of $118.78 and 200-day MA of $122.79. It has traded in a 52-week range between $89.37 – 133.50 and today’s last price is 3.87%% lower than the 52 week high of $133.50.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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