Caterpillar, Inc. (NYSE: CAT) shares rose in value on Tuesday February 7 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks were up in early trade on Tuesday which could put the equity market on track to set new records.
Investors were focusing on earnings, with GM and Michael Kors making moves after reporting early.
S&P 500 futures ESH7, +0.31% rose 7 points, or 0.3%, to 2,293.50, while Dow Jones Industrial Average futures YMH7, +0.46% tacked on 70 points, or 0.4%, to 20,042. Nasdaq-100 futures NQH7, +0.48% added 14 points, or 0.3%, to 5,171.75.
Analysts at Barclays PLC upgraded shares of Caterpillar, Inc. (NYSE: CAT) from Equal Weight to Overweight today. Barclays PLC currently has a rating of Overweight on the shares. As a means of comparison, a number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $92.91, less than the opening price of $94.32. Caterpillar, Inc. stock has a 52-week high of $99.46. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of Caterpillar, Inc. (NYSE: CAT) opened at $94.32 yesterday and traded in a range between, $93.88 and $94.92, and last traded at $94.33, which represents a jump of $1.46 over the previous closing price.
Caterpillar, Inc. (NYSE: CAT) currently has a market cap of 55.26B.
Caterpillar, Inc. (NYSE: CAT) Average Daily Trading Volume
1,210,702 shares traded hands yesterday, 13 percent below the average, out of a total float 584,757,000. 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.
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 simply 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 make sure you are buying the right stocks.
Caterpillar, Inc. (NYSE: CAT) 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 Caterpillar, Inc. (NYSE: CAT) have ranged from $60.51 – 99.46, and the stock now has a 50-day MA of $94.34 and 200-day MA of $88.47. Today’s last price is 5.16%% under the 52 week high of $99.46.
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 for the past 3 years.
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