Cabot Oil & Gas Corporation (NYSE: COG) shares rose 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 Cabot Oil & Gas Corporation (NYSE: COG) were downgraded by analysts at Bank of America Corporation in a note to their investors today. With a rating of Underperform on the stock, Cabot Oil & Gas Corporation has a 52-week high of $26.74. The one-year price target of $27.99 is above the opening price of $21.93, causing a number of other analysts to issue statements on the company recently. Downgrades happen when analysts believe that the future prospects for the security have weakened from the original recommendation, usually caused by a considerable and crucial change in the company’s actions, future outlook or industry.
Cabot Oil & Gas Corporation (NYSE: COG) shares last traded at $22.37, an increase of $0.03 or 0.00 over the previous closing price. Opening at $21.93, they fluctuated from $21.93 and $22.40 throughout the day.
Cabot Oil & Gas Corporation (NYSE: COG) currently has a market cap of 10.41B.
Cabot Oil & Gas Corporation (NYSE: COG) Average Daily Trading Volume
1,461,399 shares traded hands yesterday, lower than the norm, out of a total float 422,630,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
Cabot Oil & Gas Corporation (NYSE: COG) 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 traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Cabot Oil & Gas Corporation (NYSE: COG) now has a 50-day MA of $22.78 and 200-day MA of $23.85. It has traded in a 52-week range between $14.88 – 26.74 and today’s last price is 0.16% lower than the 52 week high of $26.74.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more over the past 3 years.
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