Analysts at Bank of America Corp. downgraded shares of Five9 Inc. (NASDAQ: FIVN) from Neutral to Underperform in a research note to investors today. The company currently has a rating of Underperform on the shares. A number of other analysts have issued reports on the stock in recent days, and Five9 Inc. has secured a consensus one-year price target of $16.43, above the opening price of $13.37, a difference of 11.77 percent. Five9 Inc. stock has a 52-week high of $16.23. Downgrades happen when analysts feel that the future prospects for the security have weakened from the initial recommendation, often caused by an important and major change in the company’s actions, future outlook or industry.
U.S. stocks on Monday closed essentially flat, after trading firmly higher, in a volatile session ahead of the start of a pair of closely watched central-bank policy meetings.
The Dow Jones Industrial Average DJIA, -0.02% closed down 3.63 points at 18,120.17.
The blue-chip gauge had been up by as much as 131 points earlier and traded within a 162-point range.
The S&P 500 SPX, +0.00% slipped 0.04 points to close at 2,139.12, after trading within an 18-point range
Meanwhile, the Nasdaq Composite Index COMP, -0.18% declined 9.54 points, or 0.2%, to close at 5,235.03.
Earlier, the Nasdaq Composite Index had been up by as many as 37 points and traded with a 58-point range
Yesterday Five9 Inc. (NASDAQ: FIVN) shares last traded at $13.96, which is a decrease of $0.41 over the previous closing price. Opening at $13.37, they ranged from $13.06 and $14.42 throughout the day.
Five9 Inc. (NASDAQ: FIVN) now has a market cap of 733.65M.
432,255 shares traded hands yesterday, 33 percent lower than the average, out of a total float 41,676,000. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume growth or dissemination by institutional investors.
While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive cue 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 professional investors have substantial teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Five9 Inc. (NASDAQ: FIVN) now has a 50-day MA of $14.16 and 200-day MA of $11.21. It has traded in a 52-week range between $3.48 – 16.23 and today’s last price is 0.14% lower than the 52 week high of $16.23.
Earnings growth is an important factor to research when buying stocks and investors look for companies that have grown their earnings by at least 25% over 3 consecutive years.
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