Capital Trust, Inc. (NYSE: BXMT) shares fell in early trading yesterday 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 edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Wells Fargo & Company downgraded shares of Capital Trust, Inc. (NYSE: BXMT) from to Market Perform in a research note to investors today. The company currently has a rating of Market Perform on the stock. The one-year price target of $31.75 is above the opening price of $30.88, resulting a number of other analysts to issue statements on the company recently. Looking back over the last 52 weeks, Capital Trust, Inc. stock has a high of $31.35. Downgrades are more common when analysts consider that the future prospects for the security have weakened from the original recommendation, usually because of an important and major digression in the company’s operations, future outlook or industry.
Shares of Capital Trust, Inc. (NYSE: BXMT) opened at $30.88 yesterday and traded in a range between, $30.65 and $30.89, and last traded at $30.78, which represents a decrease of $0.13 from the previous closing price.
Capital Trust, Inc. (NYSE: BXMT) now has a market cap of 2.89B.
Capital Trust, Inc. (NYSE: BXMT) Average Daily Trading Volume
91,217 shares traded hands yesterday, 74 percent below normal, out of a total float 81,876,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks 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.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Capital Trust, Inc. (NYSE: BXMT) 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 investors to make those trends work in their favor and increase the number of winning trades.
Trades for Capital Trust, Inc. (NYSE: BXMT) have ranged from $22.13 – 31.35, and the stock now has a 50-day MA of $30.39 and 200-day MA of $29.29. Today’s last price is 1.82%% lower than the 52 week high of $31.35.
Earnings growth is a critical factor to look at when buying stocks and investors look for companies that have raised their earnings at least 25% or more over the past 3 years.
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