Mindbody Inc. (MB) stock starts with “Buy” rating in note to investors by Craig Hallum

Mindbody Inc. (NASDAQ: MB) shares rose on Monday Dec 5 with lighter trade volume than normal after more analysts initiated coverage on the stock.

Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.

The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.

Analysts at Craig Hallum initiated coverage on Mindbody Inc. (NASDAQ: MB) stock, starting the company at Buy. Craig Hallum currently has a rating of Buy on the stock. The one-year price target of $23.21 is above the opening price of $21.50, resulting a number of other analysts to issue statements on the company recently. Looking back over the last 52 weeks, Mindbody Inc. stock has a high of $22.95. Analysts and brokerage firms will subsequently issue periodic updates after initiating coverage,. Price changes targets are not unheard of.

Shares of Mindbody Inc. (NASDAQ: MB) opened at $21.50 on Tuesday trading between $20.45 and $21.60, and last traded at $21.15, which represents an increase of $1.45 or 7.36% over the previous closing price.

Mindbody Inc. (NASDAQ: MB) currently has a market cap of 856.66M.

Mindbody Inc. (NASDAQ: MB) Average Daily Trading Volume

The stock’s average daily volume is 503,836 shares out of a total float 9,543,000 and some 57,225 shares traded hands yesterday, below the average. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to pinpoint substantial volume accumulation or circulation by institutional investors.

As with all possible breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to indicate 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.

These professional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Mindbody Inc. (NASDAQ: MB) 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 Mindbody Inc. (NASDAQ: MB) have ranged from $9.20 – 22.95, and the stock now has a 50-day MA of $19.77 and 200-day MA of $17.32. Today’s last price is 7.84%% below the 52 week high of $22.95.

Earnings growth is a critical factor to consider when buying stocks and investors look for companies that have increased their earnings by at least 25% over the past 3 years.

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