CAI International, Inc. (NYSE: CAI) shares rose on Wednesday January 25 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, 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.
CAI International, Inc. (NYSE: CAI) had its price target raised by equities researchers at SunTrust Banks, Inc. from $0.00 to $18.00. With a rating of on the stock, CAI International, Inc. has a 52-week high of $15.74. The one-year price target of $11.33 is less than the opening price of $15.40, that has caused a fair amount of other analysts to issue statements on the company recently.
Yesterday CAI International, Inc. (NYSE: CAI) shares last traded at $15.73, which is a jump of $0.65 over the previous closing price. Opening at $15.40, they fluctuated from $15.11 and $15.74 throughout the day.
CAI International, Inc. (NYSE: CAI) currently has a market cap of 298.73M.
CAI International, Inc. (NYSE: CAI) Average Daily Trading Volume
24,417 shares traded hands yesterday, 63 percent below the average, out of a total float 14,076,000. 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are considering.
CAI International, Inc. (NYSE: CAI) 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, CAI International, Inc. (NYSE: CAI) now has a 50-day MA of $10.57 and 200-day MA of $8.90. It has traded in a 52-week range between $4.83 – 15.74 and today’s last price is 0.06%% lower than the 52 week high of $15.74.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have grown their earnings by at least 25% over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.