Chicago Bridge & Iron Co. (NYSE: CBI) shares rose on Monday January 23 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
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.
Chicago Bridge & Iron Co. (NYSE: CBI) had its price target raised by equities researchers at Citigroup from $0.00 to $36.00. With a rating of on the stock, the company has a 52-week high of $41.33. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and the company has secured a consensus one-year price target of $36.57, higher than the opening price of $31.50, a difference of 11.46 percent.
Shares of Chicago Bridge & Iron Co. (NYSE: CBI) opened at $31.50 yesterday and traded in a range between, $31.41 and $32.00, and last traded at $31.91, an increase of $0.32 from the previous closing price.
Chicago Bridge & Iron Co. (NYSE: CBI) currently has a market cap of 3.19B.
Chicago Bridge & Iron Co. (NYSE: CBI) Average Daily Trading Volume
123,347 shares traded hands yesterday, 101 percent lower than the average, out of a total float 98,470,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
Chicago Bridge & Iron Co. (NYSE: CBI) 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, Chicago Bridge & Iron Co. (NYSE: CBI) now has a 50-day MA of $33.62 and 200-day MA of $31.90. It has traded in a 52-week range between $26.12 – 41.330 and today’s last price is 22.80%% lower than the 52 week high of $41.33.
Earnings growth is an important factor to look at when investing in stocks and investors seek companies that have raised their earnings at least 25% or more over a 3 year period.
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