Shopify Inc. (NYSE: SHOP) shares rose on Thursday Nov 22 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
Analysts at BTIG Research initiated coverage on Shopify Inc. (NYSE: SHOP) stock, rating the company at Buy. With a rating of Buy on the stock, Shopify Inc. has a 52-week high of $45.20. The one-year price target of $50.84 is above the opening price of $41.08, resulting a number of other analysts to issue statements on the stock in recent days. Price changes targets are not unheard of as analysts and brokerage firms will re periodic updates after initiating coverage,.
Shopify Inc. (NYSE: SHOP) shares last traded at $41.80, a jump of $1.44 or 3.57% compared to the previous closing price. Opening at $41.08, they fluctuated from $40.36 and $41.98 throughout the day.
Shopify Inc. (NYSE: SHOP) now has a market cap of 3.72B.
Shopify Inc. (NYSE: SHOP) Average Daily Trading Volume
The stock’s average daily volume is 897,094 shares out of a total float 61,112,000 and some 541,718 shares traded hands yesterday, lower than normal. Trading volume is likely to increase in the next few days as swing traders often use swings in trading volume to identify substantial volume accumulation or circulation by institutional investors.
As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to 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 watching their interests is a good way to ensure you are buying the right stocks.
Shopify Inc. (NYSE: SHOP) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Shopify Inc. (NYSE: SHOP) now has a 50-day MA of $42.02 and 200-day MA of $36.09. It has traded in a 52-week range between $18.48 – 45.20 and today’s last price is 7.52%% lower than the 52 week high of $45.20.
Earnings growth is a crucial factor to look at when buying stocks and investors seek companies that have grown their earnings at least 25% or more for a 3 year period.
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