Cenovus Energy Inc. (NYSE: CVE) shares fell on Monday January 23 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, U.S. stocks flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
Shares of Cenovus Energy Inc. (NYSE: CVE) were downgraded by analysts at Goldman Sachs in a note to their investors today. With a rating of Sell on the shares, the company has a 52-week high of $16.82. The one-year price target of $17.53 is above the opening price of $14.18, resulting a fair amount of other analysts to comment on the stock recently. Important and integral digressions in the company’s operations, future ision or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the original recommendation.
Shares of Cenovus Energy Inc. (NYSE: CVE) opened at $14.18 yesterday and traded in a range between, $13.99 and $14.22, and last traded at $14.21, which represents a decrease of $0.40 compared to the previous closing price.
Cenovus Energy Inc. (NYSE: CVE) now has a market cap of 11.84B.
Cenovus Energy Inc. (NYSE: CVE) Average Daily Trading Volume
530,397 shares crossed the trading desk yesterday, 21 percent below the average, out of a total float 832,081,000. lower than normal. Look for trading volume to pick up in the coming days as investors 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.
These instituitional investors retain teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Cenovus Energy Inc. (NYSE: CVE) 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, Cenovus Energy Inc. (NYSE: CVE) now has a 50-day MA of $15.29 and 200-day MA of $14.69. It has traded in a 52-week range between $9.10 – 16.82 and today’s last price is 15.52%% lower than the 52 week high of $16.82.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more for the past 3 years.
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