Twilio Inc (NASDAQ: TWLO) shares were down on Wednesday February 8 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting 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 Pacific Crest from $0.00 to $40.00. With a rating of on the shares, 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 and traded in a range between, $29.75 and $32.69, and last traded at $30.40, a dip of $0.56 compared to the previous closing price.
Twilio Inc (NASDAQ: TWLO) now 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 norm, 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.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
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 corroboration to see them taking a postion in a stock you are considering.
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 crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings by at least 25% over 3 consecutive years.
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