Twitter, Inc. (NYSE: TWTR) shares fell back in value on Wednesday February 8 on 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. 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.
Analysts at BTIG Research upgraded shares of Twitter, Inc. (NYSE: TWTR) from Neutral to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $25.25. As a means of comparison, a number of other analysts have spoken on the stock recently, and Twitter, Inc. has earned a consensus one-year price target of $16.32, less than the opening price of $18.77, a difference of 8.96 percent. Share prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday Twitter, Inc. (NYSE: TWTR) shares last traded at $18.22, which is a drop of $0.04 over the previous closing price. Opening at $18.77, they ranged from $18.05 and $18.77 throughout the day.
Twitter, Inc. (NYSE: TWTR) currently has a market cap of 12.90B.
Twitter, Inc. (NYSE: TWTR) Average Daily Trading Volume
The stock’s average daily volume is 16,388,400 shares out of a total float 612,335,000 and some 6,926,639 shares crossed the trading desk yesterday, 17 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.
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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Twitter, Inc. (NYSE: TWTR) 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, Twitter, Inc. (NYSE: TWTR) now has a 50-day MA of $17.03 and 200-day MA of $18.39. It has traded in a 52-week range between $13.73 – 25.25 and today’s last price is 27.84%% lower than the 52 week high of $25.25.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% over 3 consecutive years.
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