Pandora Media, Inc. (NYSE: P) shares fell on Tuesday February 7 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Analysts at Wedbush reiterated an Outperform rating on shares of Pandora Media, Inc. (NYSE: P) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Outperform on the stock, the company has a 52-week high of $14.98. A number of other analysts have spoken on the stock in recent days, and the company has earned a consensus one-year price target of $14.48, above the opening price of $13.04. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of Pandora Media, Inc. (NYSE: P) opened at $13.04 yesterday trading between $12.96 and $13.10, and last traded at $12.99, which represents a dip of $0.06 from the previous closing price.
Pandora Media, Inc. (NYSE: P) now has a market cap of 3.03B.
Pandora Media, Inc. (NYSE: P) Average Daily Trading Volume
234,719 shares traded hands yesterday, 35 percent below normal, out of a total float 206,270,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution 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 have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Pandora Media, Inc. (NYSE: P) 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 traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Pandora Media, Inc. (NYSE: P) now has a 50-day MA of $12.96 and 200-day MA of $12.96. It has traded in a 52-week range between $7.10 – 14.98 and today’s last price is 13.28%% lower than the 52 week high of $14.98.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% for 3 consecutive years.
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