Spirit Airlines, Inc. (NASDAQ: SAVE) shares were down on Wednesday February 8 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
Meanwhile U.S. stocks traded modestly lower on Wednesday, as losses in energy shares following a drop in oil prices and a slide in financials weighed on the main indexes.
The S&P 500 index SPX, -0.17% declined 6 points, or 0.3%, to 2,286, with six of the main sectors trading lower. Energy and financials were leading the losses, down more than 1%.
The Dow Jones Industrial Average DJIA, -0.26% was down 65 points, or 0.3%, to 20,021, a day after the blue-chip index set an intraday high at 10,155.35. The Nasdaq Composite COMP, -0.13% retreated from an all-time high set on Tuesday, falling 23 points, or 0.4%, to 5,650.
Spirit Airlines, Inc. (NASDAQ: SAVE) had its price target raised by equities researchers at Cowen and Company from $58.00 to $59.00. The company currently has a rating of Market Perform on the shares. The one-year price target of $65.00 is above the opening price of $53.88, that has caused a number of other analysts to issue statements on the stock recently. Looking back over the last 52 weeks, Spirit Airlines, Inc. stock has a high of $60.40.
Yesterday Spirit Airlines, Inc. (NASDAQ: SAVE) shares last traded at $53.51, a drop of $0.54 compared to the previous closing price. Opening at $53.88, they fluctuated from $53.44 and $54.03 throughout the day.
Spirit Airlines, Inc. (NASDAQ: SAVE) currently has a market cap of 3.71B.
Spirit Airlines, Inc. (NASDAQ: SAVE) Average Daily Trading Volume
268,793 shares traded hands yesterday, 38 percent below the average, out of a total float 69,078,000. 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
Spirit Airlines, Inc. (NASDAQ: SAVE) 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 effective decisions on trades.
Trades for Spirit Airlines, Inc. (NASDAQ: SAVE) have ranged from $37.17 – 60.40, and the stock now has a 50-day MA of $56.44 and 200-day MA of $48.26. Today’s last price is 11.41%% lower than the 52 week high of $60.40.
Earnings growth is a critical factor to look at when investing in stocks and investors identify companies that have increased their earnings at least 25% or more for the past 3 years.
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