Yelp Inc. (NYSE: YELP) 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.
Robert W. Baird analysts reiterated its Neutral rating on Yelp Inc. (NYSE: YELP) in a note to investors, making it one of the more closely watched stocks on Wall Street. Robert W. Baird currently has a rating of Neutral on the shares. The one-year price target of $40.94 is above the opening price of $40.90, resulting a fair amount of other analysts to comment on the stock in recent days. Looking back over the last year, Yelp Inc. stock has a high of $43.36. Share prices sometimes get a boost to the upside when analysts reiterate coverage.
Shares of Yelp Inc. (NYSE: YELP) opened at $40.90 yesterday trading between $40.50 and $41.44, and last traded at $40.94, which is an increase of $0.25 over the previous closing price.
Yelp Inc. (NYSE: YELP) now has a market cap of 3.21B.
Yelp Inc. (NYSE: YELP) Average Daily Trading Volume
The stock’s average daily volume is 2,265,130 shares out of a total float 62,293,000 and some 1,454,800 shares crossed the trading desk yesterday, 79 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.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal 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 instituitional investors retain substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
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.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Yelp Inc. (NYSE: YELP) have ranged from $14.53 – 43.36, and the stock now has a 50-day MA of $37.83 and 200-day MA of $36.11. Today’s last price is 5.58%% lower than the 52 week high of $43.36.
Earnings growth is a critical factor to consider when investing in stocks and investors seek companies that have grown their earnings by at least 25% for the past 3 years.
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