Colfax Corp. (NYSE: CFX) shares rose in value Monday Nov 14 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close.
The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Argus upgraded shares of Colfax Corp. (NYSE: CFX) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $37.63. The one-year price target of $32.82 is less than the opening price of $37.02, causing a number of other analysts to report on the company in recent days. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Colfax Corp. (NYSE: CFX) shares last traded at $37.50, which represents a spike of $1.14 or 3.14% compared to the previous closing price. Opening at $37.02, they ranged from $36.83 and $37.63 throughout the day.
Colfax Corp. (NYSE: CFX) now has a market cap of 4.60B.
Colfax Corp. (NYSE: CFX) Average Daily Trading Volume
The stock’s average daily volume is 777,920 shares out of a total float 97,416,000 and some 1,231,829 shares traded hands yesterday, higher than the norm. Significant increases in trading volume and price growth together could signal considerable volume accumulation by institutional investors.
As with all potential breakouts, investors watch for volume to be at least 40%-50% above 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 substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
Colfax Corp. (NYSE: CFX) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Colfax Corp. (NYSE: CFX) now has a 50-day MA of $30.91 and 200-day MA of $29.14. It has traded in a 52-week range between $18.22 – 37.63 and today’s last price is 0.35%% lower than the 52 week high of $37.63.
Earnings growth is an important factor to consider when buying stocks and investors identify companies that have grown their earnings by at least 25% for 3 consecutive years.
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