CBOE Holdings, Inc. (NASDAQ: CBOE) shares rose in value on Friday, January 13 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, The Dow Jones Industrial Average DJIA, -0.03% slipped 5.27 points to close 19,885.73, moving in a roughly 100-point range all session. For the week, the blue-chip index is off 0.4%.
U.S. financial markets will be closed Monday for Martin Luther King Jr. Day.
The S&P 500 index SPX, +0.18% added 4.20 points, or 0.2%, to end at 2,274.64 for a weekly loss of 0.1%, and the Nasdaq Composite Index COMP, +0.48% climbed 26.63 points, or 0.5%, to finish at 5,574.12, its sixth all-time closing high in seven trading sessions.
Analysts at Credit Suisse Group upgraded shares of CBOE Holdings, Inc. (NASDAQ: CBOE) from Neutral to Outperform today. The company currently has a rating of Outperform on the stock. As a means of comparison, a number of other analysts have spoken on the stock recently, and CBOE Holdings, Inc. has earned a consensus one-year price target of $74.07, lower than the opening price of $74.52. CBOE Holdings, Inc. stock has a 52-week high of $77.29. Share prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday CBOE Holdings, Inc. (NASDAQ: CBOE) shares last traded at $75.02, which is an increase of $1.19 from the previous closing price. Opening at $74.52, they fluctuated from $73.56 and $75.06 throughout the day.
CBOE Holdings, Inc. (NASDAQ: CBOE) currently has a market cap of 6.10B.
CBOE Holdings, Inc. (NASDAQ: CBOE) Average Daily Trading Volume
The stock’s average daily volume is 874,210 shares out of a total float 76,146,000 and some 513,258 shares crossed the trading desk yesterday, 102 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on 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 2.94%% lower than the 52 week high of $77.29.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.
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