Yelp Inc. (NYSE: YELP) shares rose on Tuesday Dec 13 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at Aegis initiated coverage on Yelp Inc. (NYSE: YELP) stock, rating the company at Buy. The company currently has a rating of Buy on the shares. A number of other analysts have spoken on the company in recent days, and the company has secured a consensus one-year price target of $41.13, higher than the opening price of $35.65. Yelp Inc. stock has a 52-week high of $43.36. Price changes targets are not unusual as analysts and brokerage firms will re periodic updates after beginning or initiating coverage.
Shares of Yelp Inc. (NYSE: YELP) opened at $35.65 on Tuesday and has traded in a range between, $35.52 and $36.60, and last traded at $36.38, which is an increase of $1.21 or 3.44% compared to the previous closing price.
Yelp Inc. (NYSE: YELP) currently has a market cap of 2.85B.
Yelp Inc. (NYSE: YELP) Average Daily Trading Volume
162,045 shares crossed the trading desk yesterday, below normal, out of a total float 61,875,000. Investors often use increases in trading volume to determine heavy volume accumulation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
However, just a day of significant buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as an indicator 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.
These professional investors have substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are considering.
Yelp Inc. (NYSE: YELP) 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.
Traders can make more useful judgments on trades when they track the activity of professional investors.
With that in mind, Yelp Inc. (NYSE: YELP) now has a 50-day MA of $36.19 and 200-day MA of $34.39. It has traded in a 52-week range between $14.53 – 43.36 and today’s last price is 16.10%% lower than the 52 week high of $43.36.
Earnings growth is a crucial factor to consider when buying stocks and investors identify companies that have raised their earnings by at least 25% for a 3 year period.
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