Inphi Corporation (IPHI) Stock Down After Price Target Increase at Jefferies Group LLC

Inphi Corporation (NYSE: IPHI) shares were down on Wednesday February 8 on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.

Meanwhile U.S. stocks traded modestly lower on Wednesday, as losses in energy shares following a drop in oil prices and a slide in financials weighed on the main indexes.

The S&P 500 index SPX, -0.17% declined 6 points, or 0.3%, to 2,286, with six of the main sectors trading lower. Energy and financials were leading the losses, down more than 1%.

The Dow Jones Industrial Average DJIA, -0.26% was down 65 points, or 0.3%, to 20,021, a day after the blue-chip index set an intraday high at 10,155.35. The Nasdaq Composite COMP, -0.13% retreated from an all-time high set on Tuesday, falling 23 points, or 0.4%, to 5,650.

Inphi Corporation (NYSE: IPHI) had its price target increased by equities researchers at Jefferies Group LLC from $0.00 to $60.00. Jefferies Group LLC currently has a rating of on the shares. The one-year price target of $50.08 is lower than the opening price of $51.28, resulting a number of other analysts to comment on the stock in recent days. Looking back over the last 52 weeks, Inphi Corporation stock has a high of $51.28.

Yesterday Inphi Corporation (NYSE: IPHI) shares last traded at $48.03, which is a dip of $0.89 over the previous closing price. Opening at $51.28, they fluctuated from $45.33 and $51.28 throughout the day.

Inphi Corporation (NYSE: IPHI) now has a market cap of 1.98B.

Inphi Corporation (NYSE: IPHI) Average Daily Trading Volume

The stock’s average daily volume is 729,581 shares out of a total float 37,748,000 and some 1,612,731 shares crossed the trading desk yesterday, 65 percent above the norm. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than 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.

Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re researching.

Inphi Corporation (NYSE: IPHI) 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, Inphi Corporation (NYSE: IPHI) now has a 50-day MA of $46.40 and 200-day MA of $42.62. It has traded in a 52-week range between $22.54 – 51.28 and today’s last price is 6.34%% lower than the 52 week high of $51.28.

Earnings growth is an important factor to research when buying stocks and investors identify companies that have increased their earnings at least 25% or more for a 3 year period.

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