Financial Engines Inc. (FNGN) Stock Up After Upgrade at Zacks Investment Research

Financial Engines Inc. (NASDAQ: FNGN) shares rose in value Thursday Nov 17 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”

The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.

Analysts at Zacks Investment Research upgraded shares of Financial Engines Inc. (NASDAQ: FNGN) from Hold to Buy today. Zacks Investment Research currently has a rating of Buy on the stock. The one-year price target of $35.50 is higher than the opening price of $33.45, causing a fair amount of other analysts to comment on the company in recent days. Looking back over the last 52 weeks, Financial Engines Inc. stock has a high of $36.55. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.

Shares of Financial Engines Inc. (NASDAQ: FNGN) opened at $33.45 on Monday and traded in a range between, $33.15 and $33.70, and last traded at $33.70, which is a spike of $0.40 or 1.20% compared to the previous closing price.

Financial Engines Inc. (NASDAQ: FNGN) currently has a market cap of 2,086.33B.

Financial Engines Inc. (NASDAQ: FNGN) Average Daily Trading Volume

23,042 shares crossed the trading desk yesterday, below the average, out of a total float 53,118,000. Trading volume is likely to increase in the next few days as swing traders often use upticks in trading volume to identify heavy volume growth or dissemination by institutional investors.

As with all potential breakouts, investors watch for volume to be at least 40%-50% above 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.

Institutional investors such as these have substantial teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.

Financial Engines Inc. (NASDAQ: FNGN) 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 investors to make those trends work in their favor and increase the number of winning trades.

Trades for Financial Engines Inc. (NASDAQ: FNGN) have ranged from $23.22 – 36.55, and the stock now has a 50-day MA of $28.68 and 200-day MA of $28.39. Today’s last price is 7.80%% below the 52 week high of $36.55.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% over 3 consecutive years.

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