Cable One, Inc. (CABO) Stock Moves Down and Here’s Why

Cable One, Inc. (NYSE: CABO) shares fell on Wednesday Jan 4 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, U.S. stocks opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.

The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.

Shares of Cable One, Inc. (NYSE: CABO) were downgraded by analysts at Moffett Nathanson in a note to their investors today. With a rating of Sell on the stock, Cable One, Inc. has a 52-week high of $635.85. The one-year price target of $408.00 is a decrease compared to the opening price of $614.00, resulting a number of other analysts to issue statements on the stock recently. Important and major digressions in the company’s operations, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the original recommendation.

Cable One, Inc. (NYSE: CABO) shares last traded at $613.08, a decrease of $6.58 per share or -0.01 from the previous closing price. Opening at $614.00, they ranged from $612.89 and $619.66 throughout the day.

Cable One, Inc. (NYSE: CABO) currently has a market cap of 3.50B.

Cable One, Inc. (NYSE: CABO) Average Daily Trading Volume

The stock’s average daily volume is 41,968 shares out of a total float 4,677,000 and some 4,346 shares crossed the trading desk yesterday, below normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.

While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal 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.

Professional investors such as these have substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Cable One, Inc. (NYSE: CABO) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.

With that in mind, Cable One, Inc. (NYSE: CABO) now has a 50-day MA of $606.62 and 200-day MA of $562.70. It has traded in a 52-week range between $390.00 – 635.85 and today’s last price is 0.04% lower than the 52 week high of $635.85.

Earnings growth is a crucial factor to research when buying stocks and investors watch for companies that have been successful at growing their earnings by at least 25% over the past 3 years.

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