CF Industries Holdings, Inc. (NYSE: CF) shares slid back in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded 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 Zacks Investment Research upgraded shares of CF Industries Holdings, Inc. (NYSE: CF) from Strong Sell to Strong-Buy today. Zacks Investment Research currently has a rating of Strong-Buy on the shares. As a means of comparison, a number of other analysts have issued reports on the stock recently, and CF Industries Holdings, Inc. has earned a consensus one-year price target of $27.49, a decrease compared to the opening price of $33.47, a difference of 8.22 percent. CF Industries Holdings, Inc. stock has a 52-week high of $37.72. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday CF Industries Holdings, Inc. (NYSE: CF) shares last traded at $33.44, which represents a decrease of $0.03 over the previous closing price. Opening at $33.47, they ranged from $33.20 and $33.62 throughout the day.
CF Industries Holdings, Inc. (NYSE: CF) now has a market cap of 7.80B.
CF Industries Holdings, Inc. (NYSE: CF) Average Daily Trading Volume
The stock’s average daily volume is 5,879,980 shares out of a total float 232,274,000 and some 296,308 shares traded hands yesterday, 1 percent lower than normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re researching.
CF Industries Holdings, Inc. (NYSE: CF) 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.
Trades for CF Industries Holdings, Inc. (NYSE: CF) have ranged from $20.77 – 37.72, and the stock now has a 50-day MA of $29.79 and 200-day MA of $25.84. Today’s last price is 11.35%% lower than the 52 week high of $37.72.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings at least 25% or more for a 3 year period.
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