Twilio Inc (NASDAQ: TWLO) 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.
Twilio Inc (NASDAQ: TWLO) had its price target increased by equities researchers at JMP Securities from $0.00 to $37.00. With a rating of on the stock, the company has a 52-week high of $70.96. The one-year price target of $38.10 is above the opening price of $31.71, resulting a fair amount of other analysts to report on the stock recently.
Shares of Twilio Inc (NASDAQ: TWLO) opened at $31.71 yesterday trading between $29.75 and $32.69, and last traded at $30.40, which represents a drop of $0.56 compared to the previous closing price.
Twilio Inc (NASDAQ: TWLO) currently has a market cap of 2.65B.
Twilio Inc (NASDAQ: TWLO) Average Daily Trading Volume
4,060,519 shares crossed the trading desk yesterday, 43 percent below the average, out of a total float 31,325,000. 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.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Twilio Inc (NASDAQ: TWLO) 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.
With that in mind, Twilio Inc (NASDAQ: TWLO) now has a 50-day MA of $29.36 and 200-day MA of $41.55. It has traded in a 52-week range between $23.66 – 70.9600 and today’s last price is 57.16%% lower than the 52 week high of $70.96.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more for 3 consecutive years.
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