Hortonworks, Inc. (NASDAQ: HDP) shares fell on Tuesday February 14 on 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 U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Analysts at Cowen and Company reiterated a Market Perform rating on shares of Hortonworks, Inc. (NASDAQ: HDP) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Market Perform on the stock, Hortonworks, Inc. has a 52-week high of $13.12. The one-year price target of $14.92 is higher than the opening price of $9.82, that has caused a number of other analysts to report on the stock in recent days. Share prices sometimes get a jump to the upside when analysts reiterate coverage.
Shares of Hortonworks, Inc. (NASDAQ: HDP) opened at $9.82 yesterday and traded in a range between, $9.81 and $10.39, and last traded at $10.36, which represents a drop of $0.15 over the previous closing price.
Hortonworks, Inc. (NASDAQ: HDP) currently has a market cap of 428.56M.
Hortonworks, Inc. (NASDAQ: HDP) Average Daily Trading Volume
317,504 shares traded hands yesterday, 41 percent below the average, out of a total float 25,875,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, conversely, 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 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 it is good confirmation to see them buying a stock you’re considering.
Hortonworks, Inc. (NASDAQ: HDP) 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 Hortonworks, Inc. (NASDAQ: HDP) have ranged from $6.42 – 13.12, and the stock now has a 50-day MA of $9.25 and 200-day MA of $8.68. Today’s last price is 21.04%% under the 52 week high of $13.12.
Earnings growth is an important factor to consider when buying stocks and investors seek companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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