Shopify Inc. (NYSE: SHOP) shares rose on in early trade Wednesday with lower trade volume than normal after more analysts initiated coverage on the stock.
Analysts at Rosenblatt Securities initiated coverage on Shopify Inc. (NYSE: SHOP) stock, rating the company at Buy. With a rating of Buy on the stock, the company has a 52-week high of $45.20. A number of other analysts have spoken on the stock in recent days, and Shopify Inc. has earned a consensus one-year price target of $46.56, higher than the opening price of $42.53, a difference of 10.84 percent. Analysts and brokerage firms will subsequently re periodic updates after beginning or initiating coverage. Price changes targets are not unusual.
U.S. stocks mostly climbed on Wednesday as crude-oil prices traded above $51 a barrel.
The Dow Jones Industrial Average DJIA, +0.18% gained 33 points, or 0.2% at 18,195, the S&P 500 index SPX, +0.07% advanced 2 points, or less than 0.1%, at 2,141, while the Nasdaq Composite Index COMP, -0.08% traded little-changed at 5,240.
U.S. stocks closed higher Tuesday as investors welcomed stronger-than-expected quarterly results from a host of companies
The S&P 500 index SPX, +0.62% finished up 13.10 points, or 0.6%, at 2,139.60, with all 11 main sectors trading higher.
The Dow Jones Industrial Average DJIA, +0.42% rose 75.54 points, or 0.4%, to close at 18,161.94.
Meanwhile, the Nasdaq Composite Index COMP, +0.85% added 44.01 points, or 0.9%, to close at 5,243.84.
Shopify Inc. (NYSE: SHOP) shares last traded at $42.94, which is a jump of $0.46 or 1.08% over the previous closing price. Opening at $42.53, they varied from $42.42 and $42.98 throughout the day.
Shopify Inc. (NYSE: SHOP) now has a market cap of 3.51B.
Shopify Inc.Trading Volume
The stock’s average daily volume is 1,028,960 shares out of a total float 51,226,000 and some 24,423 shares crossed the trading desk yesterday, lower than the norm. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to determine substantial volume aggregation or dissemination by institutional investors.
While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Shopify Inc. 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 successful trades.
With that in mind, Shopify Inc. (NYSE: SHOP) now has a 50-day MA of $42.61 and 200-day MA of $34.53. It has traded in a 52-week range between $18.48 – 45.2000 and today’s last price is 5.01%% lower than the 52 week high of $45.20.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings at least 25% or more for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.