CBOE Holdings Inc. (NASDAQ: CBOE) shares rose in value Friday Dec 2 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower on Friday, with major indexes on track for a weekly decline.
The Dow Jones Industrial Average DJIA, -0.14% fell 23 points, or 0.1%, to 19,169, while the S&P 500 SPX, +0.09% lost 1.2 point to 2,190, a move of less than 0.1%. The Nasdaq Composite COMP, -0.15% fell 5.3 points, or 0.1%, to 5,247.
Analysts at JPMorgan Chase & Co. upgraded shares of CBOE Holdings Inc. (NASDAQ: CBOE) from Neutral to Overweight today. With a rating of Overweight on the stock, CBOE Holdings Inc. has a 52-week high of $71.71. As a means of comparison, a number of other analysts have issued reports on the company recently, and CBOE Holdings Inc. has earned a consensus one-year price target of $67.14, a decrease compared to the opening price of $70.16. Usually, after analysts give an upgrade report on a stock, they will later issue other revisions, usually followed by a price target change.
CBOE Holdings Inc. (NASDAQ: CBOE) shares last traded at $70.43, which is an increase of $0.95 or 1.37% compared to the previous closing price. Opening at $70.16, they fluctuated from $69.95 and $71.71 throughout the day.
CBOE Holdings Inc. (NASDAQ: CBOE) now has a market cap of 5.72B.
CBOE Holdings Inc. (NASDAQ: CBOE) Average Daily Trading Volume
The stock’s average daily volume is 879,533 shares out of a total float 76,137,000 and some 180,876 shares traded hands yesterday, below normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to pinpoint heavy volume aggregation or distribution by institutional investors.
However, just a day of heavy buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks. Thus, 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 investors 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 – 71.71, and the stock now has a 50-day MA of $65.77 and 200-day MA of $66.45. Today’s last price is 1.78%% under the 52 week high of $71.71.
Earnings growth is an important factor to consider when buying stocks and investors identify companies that have grown their earnings at least 25% or more for the past 3 years.
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