Yelp Inc. (NYSE: YELP) shares slid back in value Monday Nov 14 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close. The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Vetr Inc. upgraded shares of Yelp Inc. (NYSE: YELP) from Buy to Strong-Buy today. The company currently has a rating of Strong-Buy on the shares. The one-year price target of $41.22 is higher than the opening price of $36.54, causing a fair amount of other analysts to comment on the stock recently. Looking back over the last year, Yelp Inc. stock has a high of $43.36. Typically, after analysts publish an upgrade report on a stock, they will later issue periodic revisions, usually followed by a price target change.
Shares of Yelp Inc. (NYSE: YELP) opened at $36.54 on Monday and traded in a range between, $35.25 and $37.13, and last traded at $35.72, which represents a dip of $0.57 per share or -1.57% compared to the previous closing price.
Yelp Inc. (NYSE: YELP) now has a market cap of 2.77B.
Yelp Inc.Average Daily Trading Volume
3,121,838 shares traded hands yesterday, higher than the average, out of a total float 58,436,000. Substantial expansions in trading volume and price inflation together could indicate excessive volume accumulation by institutional investors.
While an increase in trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive indicator 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 investigate thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
Yelp Inc. 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, Yelp Inc. (NYSE: YELP) now has a 50-day MA of $37.41 and 200-day MA of $32.31. It has traded in a 52-week range between $14.53 – 43.36 and today’s last price is 17.62%% lower than the 52 week high of $43.36.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.