Five9 Inc. (NASDAQ: FIVN) shares rose on Thursday Nov 17 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
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.
Five9 Inc. (NASDAQ: FIVN) had its Sell rating reiterated by equities researchers at Bank of America Corp. in a research note to investors. With a rating of Sell on the stock, Five9 Inc. has a 52-week high of $16.40. As a means of comparison, a number of other analysts have spoken on the stock recently, and Five9 Inc. has secured a consensus one-year price target of $17.63, above the opening price of $14.91. Share prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Five9 Inc. (NASDAQ: FIVN) shares last traded at $15.18, a jump of $0.19 or 1.23% over the previous closing price. Opening at $14.91, they fluctuated from $14.47 and $15.23 throughout the day.
Five9 Inc. (NASDAQ: FIVN) currently has a market cap of 803.79B.
Five9 Inc. (NASDAQ: FIVN) Average Daily Trading Volume
52,548 shares traded hands yesterday, below the norm, out of a total float 42,131,000. Swing traders often use swings in trading volume to pinpoint substantial volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to demonstrate 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 that research thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.
Five9 Inc. (NASDAQ: FIVN) 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.
Traders can make more impactful decisions on trades when they follow the trading habits of professional investors.
With that in mind, Five9 Inc. (NASDAQ: FIVN) now has a 50-day MA of $14.53 and 200-day MA of $12.95. It has traded in a 52-week range between $5.60 – 16.400 and today’s last price is 7.47%% lower than the 52 week high of $16.40.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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