Crown Holdings, Inc. (NYSE: CCK) 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 Crown Holdings, Inc. (NYSE: CCK) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Sell on the shares, the company has a 52-week high of $57.49. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $62.00, higher than the opening price of $53.25. Downgrades are more common when analysts feel that the future prospects for the security have dropped from the initial recommendation, usually because of a material and fundamental digression in the company’s operations, future direction or industry.
Crown Holdings, Inc. (NYSE: CCK) shares last traded at $53.66, which represents a spike of $0.50 or 0.01 compared to the previous closing price. Opening at $53.25, they varied from $53.25 and $53.82 throughout the day.
Crown Holdings, Inc. (NYSE: CCK) now has a market cap of 7.44B.
Crown Holdings, Inc. (NYSE: CCK) Average Daily Trading Volume
76,971 shares traded hands yesterday, below normal, out of a total float 133,257,000. 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.
While increased trading for short periods will not mean much will not mean much, conversely, 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.
These professional investors have substantial teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
Crown Holdings, Inc. (NYSE: CCK) 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, Crown Holdings, Inc. (NYSE: CCK) now has a 50-day MA of $53.42 and 200-day MA of $53.65. It has traded in a 52-week range between $43.30 – 57.49 and today’s last price is 0.07% lower than the 52 week high of $57.49.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings at least 25% or more over the past 3 years.
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