Splunk Inc. (NASDAQ: SPLK) shares slid back in value Wednesday Dec 14 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. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Zacks Investment Research upgraded shares of Splunk Inc. (NASDAQ: SPLK) from Sell to Hold today. The company currently has a rating of Hold on the stock. The one-year price target of $71.24 is higher than the opening price of $56.62, resulting a number of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Splunk Inc. stock has a high of $65.75. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Splunk Inc. (NASDAQ: SPLK) shares last traded at $56.45, which is a decrease of $0.56 per share or -0.98% from the previous closing price. Opening at $56.62, they fluctuated from $56.22 and $56.75 throughout the day.
Splunk Inc. (NASDAQ: SPLK) now has a market cap of 7.66B.
Splunk Inc. (NASDAQ: SPLK) Average Daily Trading Volume
203,243 shares traded hands yesterday, lower than the norm, out of a total float 134,058,000. Momentum traders often use increases in trading volume to identify large volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
While an increase in 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 critical.
Institutional sponsorship commonly 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 taking a postion in a stock you’re researching.
Splunk Inc. (NASDAQ: SPLK) 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 how they influence moving averages,it allows for traders to make more impactful decisions on trades.
With that in mind, Splunk Inc. (NASDAQ: SPLK) now has a 50-day MA of $58.33 and 200-day MA of $58.96. It has traded in a 52-week range between $29.85 – 65.75 and today’s last price is 14.14%% lower than the 52 week high of $65.75.
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 been successful at growing their earnings by at least 25% over the past 3 years.
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.