Limelight Networks Inc (NASDAQ:LLNW) Stock Moves in a Range: How to Trade Now?
Analyst actions can often have a significant effect on a stock and hence, it came as no surprise that the Limelight Networks Inc (NASDAQ:LLNW) stock ended up with declines of as much as 4.30% over the course of the previous week.
The negative trigger for the stock came in the form of a downgrading of the stock by Brett Feldman, an analyst with the investment banking giant Goldman Sachs. Feldman downgraded the stock to sell from neural and naturally it led to a bit of an exodus of investors. The new about the downgrade emerged on July 6 and last week, it led to the decline in the Limelight stock.
In addition to that, the target price for the stock was also slashed to $2.5 a share from $3 a share. The reason to downgrade the stock of the edge cloud services company was primarily due to the fact that Limelight is possibly far too dependent on content delivery networks for its revenues. As a matter of fact, as much as 80% of the revenues generated by the company come from those channels. Additionally, as the coronavirus pandemic eased, there was a decline on online traffic and it led to pricing pressure for Limelight.
Market Reaction:
On Friday, LLNW stock fell 0.7074 at $2.68 with more than 906k shares, compared to its average volume of 2.13 million shares. The stock has moved within a range of $2.6800 – 2.7500 after opening the trade at $2.69. Over the past 52-week, the stock has been trading within a range of $2.6600 – 7.9000.