Cabot Corporation (NYSE: CBT) shares rose in early trading today on lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, in early trading today the Dow Jones Industrial Average DJIA, +0.19% rose 40 points, or 0.2%, to 19,929 while the S&P 500 SPX, +0.31% added 5 points to 2,275, a rise of 0.2%. The Nasdaq Composite Index COMP, +0.53% climbed 19 points, or 0.3%, to 5,567.
Analysts at Aegis initiated coverage on Cabot Corporation (NYSE: CBT) stock, starting the company at Hold. With a rating of Hold on the shares, Cabot Corporation has a 52-week high of $54.24. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and Cabot Corporation has earned a consensus one-year price target of $54.00, higher than the opening price of $52.77, a difference of 10.15 percent. Analysts and brokerage firms will subsequently re periodic updates after initiating coverage,. Changes in price targets are not unusual.
Shares of Cabot Corporation (NYSE: CBT) opened at $52.77 yesterday and traded in a range between, $52.71 and $53.32, and last traded at $53.20, which is a spike of $0.41 compared to the previous closing price.
Cabot Corporation (NYSE: CBT) now has a market cap of 3.32B.
Cabot Corporation (NYSE: CBT) Average Daily Trading Volume
13,638 shares traded hands yesterday, 108 percent below the average, out of a total float 61,528,000. 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
Cabot Corporation (NYSE: CBT) 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 traders to make those trends work in their favor and increase the number of winning trades.
Trades for Cabot Corporation (NYSE: CBT) have ranged from $36.12 – 54.24, and the stock now has a 50-day MA of $52.01 and 200-day MA of $50.40. Today’s last price is 1.92%% lower than the 52 week high of $54.24.
Earnings growth is an important factor to research when buying stocks and investors look for companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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