Nasdaq Inc. (NDAQ) stock down despite upgrade at Zacks Investment Research

Zacks Investment Research (Nasdaq Inc.: NASDAQ) shares fell back in value Wednesday Dec 28 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. stocks were little changed on Wednesday, as investors found few reasons to keep pushing shares higher towards the 20,000 mark.

The Dow Jones Industrial Average DJIA, -0.11% rose 3.1 points to 19,949, essentially unchanged on the day. The S&P 500 SPX, -0.39% lost 3 points, or 0.1%, to 2,266 while the Nasdaq Composite Index COMP, -0.59% slipped 6.4 points, or 0.1%, to 5,482.

Analysts at Zacks Investment Research upgraded shares of Zacks Investment Research (Nasdaq Inc.: NASDAQ) from Hold to Buy today. With a rating of Buy on the shares, Nasdaq Inc. has a 52-week high of $71.92. The one-year price target of $75.07 is above the opening price of $67.58, that has caused a number of other analysts to report on the company in recent days. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.

Zacks Investment Research (Nasdaq Inc.: NASDAQ) shares last traded at $67.19, a drop of $0.34 per share or -0.50% compared to the previous closing price. Opening at $67.58, they fluctuated from $67.19 and $67.62 throughout the day.

Zacks Investment Research (Nasdaq Inc.: NASDAQ) now has a market cap of 11.10B.

Zacks Investment Research (Nasdaq Inc.: NASDAQ) Average Daily Trading Volume

30,036 shares crossed the trading desk yesterday, lower than the norm, out of a total float 114,994,000. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to pinpoint substantial volume aggregation or distribution by institutional investors.

However, one day of heavy buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

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

Zacks Investment Research (Nasdaq Inc.: NASDAQ) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more useful choices on trades.

With that in mind, Zacks Investment Research (Nasdaq Inc.: NASDAQ) now has a 50-day MA of $66.40 and 200-day MA of $67.36. It has traded in a 52-week range between $55.27 – 71.92 and today’s last price is 6.58%% lower than the 52 week high of $71.92.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings by at least 25% over a 3 year period.

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