CNO Financial Group, Inc. (NYSE: CNO) shares rose 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 in early trading, the Dow Jones Industrial Average DJIA, +0.31% rose 24 points, or 0.1%, to 19,883, while the S&P 500 index ESH7, +0.13% dipped less than 1 point to 2,268. The Nasdaq Composite COMP, +0.02% which reached its fourth-straight record close on Tuesday, rose 1 point to 5,553.
Shares of CNO Financial Group, Inc. (NYSE: CNO) were downgraded by analysts at Wells Fargo & Company in a note to their investors today. With a rating of Market Perform on the shares, the company has a 52-week high of $20.55. The one-year price target of $20.64 is higher than the opening price of $19.14, that has caused a fair amount of other analysts to comment on the stock recently. Material and crucial changes in the company’s operations, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the original recommendation.
Yesterday CNO Financial Group, Inc. (NYSE: CNO) shares last traded at $19.20, a jump of $0.06 over the previous closing price. Opening at $19.14, they fluctuated from $19.04 and $19.25 throughout the day.
CNO Financial Group, Inc. (NYSE: CNO) now has a market cap of 3.33B.
CNO Financial Group, Inc. (NYSE: CNO) Average Daily Trading Volume
180,546 shares crossed the trading desk yesterday, 105 percent below the norm, out of a total float 171,380,000. 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.
While increased trading for short periods will not mean much will not mean much, however, 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
CNO Financial Group, Inc. (NYSE: CNO) 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 successful trades.
Trades for CNO Financial Group, Inc. (NYSE: CNO) have ranged from $14.30 – 20.550, and the stock now has a 50-day MA of $18.90 and 200-day MA of $16.85. Today’s last price is 6.59%% under the 52 week high of $20.55.
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 by at least 25% over 3 consecutive years.
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