CA, Inc. (CA) stock falls, “Buy” rating reaffirmed by Jefferies Group LLC Analysts

CA, Inc. (NYSE: CA) shares fell on Wednesday January 25 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.

Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened

The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.

The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.

All three main indexes set intraday records shortly after the opening bell.

CA, Inc. (NYSE: CA) had its Buy rating reiterated by equities researchers at Jefferies Group LLC in a research note to investors. The company currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have spoken on the company recently, and the company has earned a consensus one-year price target of $33.11, higher than the opening price of $31.53. CA, Inc. stock has a 52-week high of $34.99. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.

Yesterday CA, Inc. (NYSE: CA) shares last traded at $31.34, which represents a dip of $1.61 over the previous closing price. Opening at $31.53, they ranged from $31.10 and $32.01 throughout the day.

CA, Inc. (NYSE: CA) now has a market cap of 13.10B.

CA, Inc. (NYSE: CA) Average Daily Trading Volume

1,733,589 shares crossed the trading desk yesterday, 27 percent lower than normal, out of a total float 313,248,000. 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.

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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

CA, Inc. (NYSE: CA) 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.

Trades for CA, Inc. (NYSE: CA) have ranged from $26.86 – 34.99, and the stock now has a 50-day MA of $32.46 and 200-day MA of $32.82. Today’s last price is 10.43%% lower than the 52 week high of $34.99.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have raised their earnings by at least 25% over 3 consecutive years.

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