XO Group Inc. (XOXO) stock starts with “Buy” rating in note to investors by Aegis

XO Group Inc. (NYSE: XOXO) shares rose on Tuesday Dec 6 with lighter trade volume than normal after more analysts initiated coverage on the stock.

Meanwhile, U.S. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.

The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%

Analysts at Aegis initiated coverage on XO Group Inc. (NYSE: XOXO) stock, starting the company at Buy. The company currently has a rating of Buy on the stock. A number of other analysts have spoken on the stock recently, and the company has earned a consensus one-year price target of $20.50, higher than the opening price of $18.90. XO Group Inc. stock has a 52-week high of $19.92. Changes in price targets are not unheard of as analysts and brokerage firms will issue periodic updates after initiating coverage,.

XO Group Inc. (NYSE: XOXO) shares last traded at $18.70, which is an increase of $0.18 or 0.97% over the previous closing price. Opening at $18.90, they fluctuated from $18.66 and $18.90 throughout the day.

XO Group Inc. (NYSE: XOXO) now has a market cap of 474.38M.

XO Group Inc. (NYSE: XOXO) Average Daily Trading Volume

14,129 shares traded hands yesterday, below the norm, out of a total float 22,329,000. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to pinpoint substantial volume aggregation or dissemination by institutional investors.

However, one day of high volume buy side trading is not enough to determine a trend. So market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.

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’re researching.

XO Group Inc. (NYSE: XOXO) 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 traders to make those trends work in their favor and increase the number of winning trades.

With that in mind, XO Group Inc. (NYSE: XOXO) now has a 50-day MA of $18.23 and 200-day MA of $18.13. It has traded in a 52-week range between $13.64 – 19.92 and today’s last price is 6.12%% lower than the 52 week high of $19.92.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more over the past 3 years.

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