Weibo Corporation (NASDAQ: WB) shares rose on Monday February 13 on lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Analysts at Instinet initiated coverage on Weibo Corporation (NASDAQ: WB) stock, starting the company at Buy. Instinet currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have commented on the company recently, and Weibo Corporation has secured a consensus one-year price target of $54.63, above the opening price of $53.42, a difference of 10.15 percent. Weibo Corporation stock has a 52-week high of $55.93. Price changes targets are not unusual as analysts and brokerage firms will publish periodic updates after initiating coverage,.
Yesterday Weibo Corporation (NASDAQ: WB) shares last traded at $53.83, a jump of $0.73 from the previous closing price. Opening at $53.42, they ranged from $52.85 and $53.87 throughout the day.
Weibo Corporation (NASDAQ: WB) currently has a market cap of 11.16B.
Weibo Corporation (NASDAQ: WB) Average Daily Trading Volume
167,606 shares traded hands yesterday, 80 percent below normal, out of a total float 24,086,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, 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.
These instituitional investors have substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you are considering.
Weibo Corporation (NASDAQ: WB) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Weibo Corporation (NASDAQ: WB) now has a 50-day MA of $46.79 and 200-day MA of $46.64. It has traded in a 52-week range between $12.09 – 55.93 and today’s last price is 3.75%% lower than the 52 week high of $55.93.
Earnings growth is a crucial factor to consider when investing in stocks and investors seek companies that have increased their earnings by at least 25% over a 3 year period.
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