TripAdvisor Inc. (NASDAQ: TRIP) shares rose in value Monday Dec 5 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Stifel Nicolaus upgraded shares of TripAdvisor Inc. (NASDAQ: TRIP) from Sell to Hold today. With a rating of Hold on the shares, TripAdvisor Inc. has a 52-week high of $87.50. The one-year price target of $53.80 is higher than the opening price of $47.13, that has caused a number of other analysts to comment on the stock recently. Typically, after analysts issue an upgrade report on a stock, they will subsequently issue periodic revisions, such as a price target change.
Shares of TripAdvisor Inc. (NASDAQ: TRIP) opened at $47.13 on Tuesday and has traded in a range between, $46.69 and $47.88, and last traded at $47.73, a jump of $1.27 or 2.73% over the previous closing price.
TripAdvisor Inc. (NASDAQ: TRIP) currently has a market cap of 6.95B.
TripAdvisor Inc. (NASDAQ: TRIP) Average Daily Trading Volume
305,617 shares traded hands yesterday, below the average, out of a total float 114,285,000. Swing traders often use upticks in trading volume to pinpoint heavy volume accumulation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
However, one day of high volume buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.
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 confirmation to see them taking a postion in a stock you’re researching.
TripAdvisor Inc. (NASDAQ: TRIP) 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, TripAdvisor Inc. (NASDAQ: TRIP) now has a 50-day MA of $58.50 and 200-day MA of $63.17. It has traded in a 52-week range between $45.95 – 87.50 and today’s last price is 45.45%% lower than the 52 week high of $87.50.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% for a 3 year period.
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