LifeLock Inc. (LOCK) shares fall following downgrade at Canaccord Genuity

LifeLock Inc. (NYSE: LOCK) shares rose on Tuesday Nov 22 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.

The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.

Analysts at Canaccord Genuity downgraded shares of LifeLock Inc. (NYSE: LOCK) from Buy to Hold in a research note to investors today. The company currently has a rating of Hold on the stock. As a means of comparison, a number of other analysts have issued reports on the stock recently, and the company has secured a consensus one-year price target of $19.75, less than the opening price of $23.82. LifeLock Inc. stock has a 52-week high of $23.98. Important and integral changes in the company’s procedures, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have dropped from the initial recommendation.

Shares of LifeLock Inc. (NYSE: LOCK) opened at $23.82 on Tuesday trading between $23.80 and $23.88, and last traded at $23.87, which represents a spike of $0.06 or 0.25% compared to the previous closing price.

LifeLock Inc. (NYSE: LOCK) now has a market cap of 2.25B.

LifeLock Inc. (NYSE: LOCK) Average Daily Trading Volume

The stock’s average daily volume is 1,790,360 shares out of a total float 69,932,000 and some 764,179 shares traded hands yesterday, lower than normal. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to identify heavy volume aggregation or distribution by institutional investors.

While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue 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 instituitional investors have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

LifeLock Inc. (NYSE: LOCK) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

With that in mind, LifeLock Inc. (NYSE: LOCK) now has a 50-day MA of $17.69 and 200-day MA of $15.99. It has traded in a 52-week range between $9.14 – 23.98 and today’s last price is 0.46%% lower than the 52 week high of $23.98.

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

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