Cameco Corporation (CCJ) shares fall following downgrade at RBC Capital Markets

Cameco Corporation (NYSE: CCJ) shares fell on Thursday February 2 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, The Dow Jones Industrial Average DJIA, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.

Shares of Cameco Corporation (NYSE: CCJ) were downgraded by analysts at RBC Capital Markets in a note to their investors today. With a rating of Sector Perform on the stock, the company has a 52-week high of $13.59. The one-year price target of $12.59 is higher than the opening price of $11.28, resulting a fair amount of other analysts to issue statements on the company in recent days. Downgrades are more common when analysts believe that the future prospects for the security have diminished from the initial recommendation, usually caused by an important and major digression in the company’s operations, future vision or industry.

Shares of Cameco Corporation (NYSE: CCJ) opened at $11.28 yesterday trading between $10.63 and $11.31, and last traded at $10.64, a dip of $0.64 over the previous closing price.

Cameco Corporation (NYSE: CCJ) now has a market cap of 4.21B.

Cameco Corporation (NYSE: CCJ) Average Daily Trading Volume

The stock’s average daily volume is 3,888,720 shares out of a total float 395,206,000 and some 2,070,876 shares traded hands yesterday, 48 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

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 investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Cameco Corporation (NYSE: CCJ) 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 Cameco Corporation (NYSE: CCJ) have ranged from $7.41 – 13.590, and the stock now has a 50-day MA of $11.45 and 200-day MA of $9.64. Today’s last price is 21.74%% below the 52 week high of $13.59.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more over 3 consecutive years.

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