Cimarex Energy Co (NYSE: XEC) shares fell back in value on Tuesday January 17 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade, the Dow Jones Industrial Average was 47 points lower, or 0.24% to 19838, the S&P 500 fell 7 points, or 0.29% to 2267, while the Nasdaq was down 19 points, or 0.35% to 5554.
Analysts at Jefferies Group upgraded shares of Cimarex Energy Co (NYSE: XEC) from Underperform to Hold today. The company currently has a rating of Hold on the stock. A number of other analysts have commented on the company in recent days, and Cimarex Energy Co has secured a consensus one-year price target of $155.24, above the opening price of $140.29, a difference of 11.17 percent. Cimarex Energy Co stock has a 52-week high of $146.96. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Cimarex Energy Co (NYSE: XEC) opened at $140.29 yesterday and traded in a range between, $138.36 and $141.45, and last traded at $138.94, which is a dip of $0.72 from the previous closing price.
Cimarex Energy Co (NYSE: XEC) currently has a market cap of 13.19B.
Cimarex Energy Co (NYSE: XEC) Average Daily Trading Volume
92,368 shares traded hands yesterday, 118 percent below normal, out of a total float 93,271,000. 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.
These professional investors have 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.
Cimarex Energy Co (NYSE: XEC) 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.
With that in mind, Cimarex Energy Co (NYSE: XEC) now has a 50-day MA of $137.73 and 200-day MA of $130.05. It has traded in a 52-week range between $72.77 – 146.960 and today’s last price is 5.46%% lower than the 52 week high of $146.96.
Earnings growth is a critical factor to consider when investing in stocks and investors watch for companies that have grown their earnings at least 25% or more over a 3 year period.
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