CBOE Holdings, Inc. (NASDAQ: CBOE) shares rose in value on Tuesday January 31 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.60% fell 140 points, or 0.7%, to 19,833, with 26 of the 30 blue-chip companies trading lower. Nike, Inc. NKE, -1.10% down 2.4% and Intel Corp. INTC, -1.70% off 1%, were leading losses.
The S&P 500 SPX, -0.33% was off by 10 points, or 0.5%, to 2,270 with seven of the 11 main sectors trading lower. Industrials, consumer-discretionary, and technology shares were the worst performers, while real estate and utilities stocks attracted buyers.
The health-care sector, which was down in early trade, rebounded after President Trump called for scaling back drugmaker’s regulation, lowering taxes and prices of medicines.
The Nasdaq Composite COMP, -0.25% declined 31 points, or 0.6%, to 5,581.
Analysts at Bank of America Corporation upgraded shares of CBOE Holdings, Inc. (NASDAQ: CBOE) from Underperform to Buy today. With a rating of Buy on the stock, CBOE Holdings, Inc. has a 52-week high of $79.19. The one-year price target of $78.17 is a decrease compared to the opening price of $78.70, resulting a fair amount of other analysts to comment on the stock recently. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Yesterday CBOE Holdings, Inc. (NASDAQ: CBOE) shares last traded at $78.91, a spike of $1.04 compared to the previous closing price. Opening at $78.70, they fluctuated from $78.25 and $79.19 throughout the day.
CBOE Holdings, Inc. (NASDAQ: CBOE) currently has a market cap of 6.41B.
CBOE Holdings, Inc. (NASDAQ: CBOE) Average Daily Trading Volume
157,677 shares crossed the trading desk yesterday, 114 percent below the norm, out of a total float 76,146,000. lower than normal. Look for trading volume to pick up in the coming days as swing 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
CBOE Holdings, Inc. (NASDAQ: CBOE) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for CBOE Holdings, Inc. (NASDAQ: CBOE) have ranged from $58.43 – 79.19, and the stock now has a 50-day MA of $75.28 and 200-day MA of $69.56. Today’s last price is 0.35%% below the 52 week high of $79.19.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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