CBOE Holdings, Inc. (NASDAQ: CBOE) shares slid back in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
Analysts at Zacks Investment Research upgraded shares of CBOE Holdings, Inc. (NASDAQ: CBOE) from Hold to Buy today. The company currently has a rating of Buy on the stock. The one-year price target of $73.64 is lower than the opening price of $74.61, resulting a fair amount of other analysts to report on the stock in recent days. Looking back over the last year, CBOE Holdings, Inc. stock has a high of $77.29. Typically, after analysts issue an upgrade report on a stock, they will later issue periodic revisions, such as a price target change.
Shares of CBOE Holdings, Inc. (NASDAQ: CBOE) opened at $74.61 yesterday trading between $74.02 and $74.98, and last traded at $74.04, which is a drop of $0.49 from the previous closing price.
CBOE Holdings, Inc. (NASDAQ: CBOE) currently has a market cap of 6.02B.
CBOE Holdings, Inc. (NASDAQ: CBOE) Average Daily Trading Volume
25,221 shares crossed the trading desk yesterday, 6 percent lower than the average, out of a total float 76,146,000. 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.
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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are considering.
CBOE Holdings, Inc. (NASDAQ: CBOE) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, CBOE Holdings, Inc. (NASDAQ: CBOE) now has a 50-day MA of $73.00 and 200-day MA of $68.46. It has traded in a 52-week range between $58.43 – 77.29 and today’s last price is 4.20%% lower than the 52 week high of $77.29.
Earnings growth is a crucial factor to look at when investing in stocks and investors look for companies that have increased their earnings at least 25% or more over the past 3 years.
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