Twilio Inc (NASDAQ: TWLO) shares rose on Friday January 13 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.03% slipped 5.27 points to close 19,885.73, moving in a roughly 100-point range all session. For the week, the blue-chip index is off 0.4%.
U.S. financial markets will be closed Monday for Martin Luther King Jr. Day.
The S&P 500 index SPX, +0.18% added 4.20 points, or 0.2%, to end at 2,274.64 for a weekly loss of 0.1%, and the Nasdaq Composite Index COMP, +0.48% climbed 26.63 points, or 0.5%, to finish at 5,574.12, its sixth all-time closing high in seven trading sessions.
Analysts at Oppenheimer Holdings, Inc. reiterated a Top Pick rating on shares of Twilio Inc (NASDAQ: TWLO) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Top Pick on the shares, Twilio Inc has a 52-week high of $70.96. A number of other analysts have issued reports on the company in recent days, and Twilio Inc has earned a consensus one-year price target of $38.44, higher than the opening price of $27.82, a difference of 13.75 percent. Typically, after analysts issue a “reiterated rating” report on a stock, they will subsequently issue other updates, such as a price target change.
Shares of Twilio Inc (NASDAQ: TWLO) opened at $27.82 yesterday trading between $27.41 and $28.11, and last traded at $27.96, an increase of $0.08 over the previous closing price.
Twilio Inc (NASDAQ: TWLO) currently has a market cap of 2.44B.
Twilio Inc (NASDAQ: TWLO) Average Daily Trading Volume
The stock’s average daily volume is 5,436,350 shares out of a total float 30,993,000 and some 2,694,681 shares traded hands yesterday, 120 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good validation 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 $30.22 and 200-day MA of $42.51. It has traded in a 52-week range between $23.66 – 70.96 and today’s last price is 60.60%% 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 identify companies that have been successful at growing their earnings by at least 25% for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article 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.