Netflix Inc. (NASDAQ: NFLX) shares rose in value Tuesday Dec 6 with slower 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 looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.
The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%
Analysts at Evercore ISI upgraded shares of Netflix Inc. (NASDAQ: NFLX) from Sell to Hold today. With a rating of Hold on the stock, the company has a 52-week high of $129.29. The one-year price target of $123.85 is above the opening price of $120.10, resulting a fair amount of other analysts to report on the stock in recent days. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Netflix Inc. (NASDAQ: NFLX) shares last traded at $122.40, which represents a spike of $3.24 or 2.72% compared to the previous closing price. Opening at $120.10, they varied from $119.42 and $122.55 throughout the day.
Netflix Inc. (NASDAQ: NFLX) now has a market cap of 52.53B.
Netflix Inc. (NASDAQ: NFLX) Average Daily Trading Volume
1,825,219 shares crossed the trading desk yesterday, below normal, out of a total float 422,201,000. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify large volume accumulation or circulation by institutional investors.
However, one day of heavy buy side trading is not enough to assert a trend. So market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.
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 that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Netflix Inc. (NASDAQ: NFLX) 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 marking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more useful choices on trades.
Trades for Netflix Inc. (NASDAQ: NFLX) have ranged from $79.95 – 129.29, and the stock now has a 50-day MA of $119.81 and 200-day MA of $102.15. Today’s last price is 5.33%% below the 52 week high of $129.29.
Earnings growth is an important factor to look at when buying stocks and investors look for companies that have raised their earnings by at least 25% for a 3 year period.
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