Netflix Inc. (NASDAQ: NFLX) shares rose on Monday Nov 21 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, stocks were set to open higher this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Analysts at Brean Capital initiated coverage on Netflix Inc. (NASDAQ: NFLX) stock, starting the company at Buy. With a rating of Buy on the stock, Netflix Inc. has a 52-week high of $133.27. As a means of comparison, a number of other analysts have commented on the stock recently, and Netflix Inc. has secured a consensus one-year price target of $123.13, higher than the opening price of $116.20. Price changes targets are not unusual as analysts and brokerage firms will re periodic updates after initiating coverage,.
Netflix Inc. (NASDAQ: NFLX) shares last traded at $118.55, which is an increase of $3.34 or 2.90% compared to the previous closing price. Opening at $116.20, they ranged from $116.19 and $118.72 throughout the day.
Netflix Inc. (NASDAQ: NFLX) currently has a market cap of 50.88B.
Netflix Inc. (NASDAQ: NFLX) Average Daily Trading Volume
The stock’s average daily volume is 9,407,810 shares out of a total float 421,922,000 and some 1,571,669 shares crossed the trading desk yesterday, lower than the average. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify substantial volume accumulation or circulation by institutional investors.
However, just a day of high volume buy side trading is not enough to assert a trend. So 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.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
Netflix Inc. (NASDAQ: NFLX) 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 winning trades.
With that in mind, Netflix Inc. (NASDAQ: NFLX) now has a 50-day MA of $114.95 and 200-day MA of $99.91. It has traded in a 52-week range between $79.95 – 133.27 and today’s last price is 11.05%% lower than the 52 week high of $133.27.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% for 3 consecutive years.
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