CF Industries Holdings Inc. (NYSE: CF) shares rose in value on Friday January 20 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 rose Friday morning as Wall Street closely awaited Donald Trump’s inauguration as the nation’s 45th president.
The Dow Jones Industrial Average DJIA, +0.41% rose 95 points, or 0.5%, to 19,826, while the S&P 500 index SPX, +0.41% climbed 11 points, or 0.5%, to 2,275 and the Nasdaq Composite COMP, +0.37% added 28 points, or 0.6%, to 5,571.
Analysts at Bank of America Corp. upgraded shares of CF Industries Holdings Inc. (NYSE: CF) from Neutral to Buy today. Bank of America Corp. currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have spoken on the stock recently, and the company has earned a consensus one-year price target of $29.07, lower than the opening price of $33.72, a difference of 8.56 percent. CF Industries Holdings Inc. stock has a 52-week high of $37.72. Typically, after analysts assign an upgrade report on a stock, they will subsequently issue sporadic updates, usually followed by a price target change.
Shares of CF Industries Holdings Inc. (NYSE: CF) opened at $33.72 yesterday trading between $33.04 and $34.10, and last traded at $33.95, a jump of $1.70 over the previous closing price.
CF Industries Holdings Inc. (NYSE: CF) currently has a market cap of 7.91B.
CF Industries Holdings Inc. (NYSE: CF) Average Daily Trading Volume
The stock’s average daily volume is 5,960,960 shares out of a total float 232,274,000 and some 1,784,265 shares traded hands yesterday, 27 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.
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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning 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 $30.94 and 200-day MA of $26.31. Today’s last price is 9.99%% under the 52 week high of $37.72.
Earnings growth is a crucial factor to look at when buying stocks and investors identify companies that have increased their earnings by at least 25% over the past 3 years.
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