CubeSmart (NYSE: CUBE) shares fell back in value Thursday Nov 17 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
Analysts at Zacks Investment Research upgraded shares of CubeSmart (NYSE: CUBE) from Hold to Buy today. With a rating of Buy on the stock, CubeSmart has a 52-week high of $33.52. As a means of comparison, a number of other analysts have commented on the stock recently, and CubeSmart has earned a consensus one-year price target of $30.75, higher than the opening price of $24.77, a difference of 12.46 percent. Share prices often move to the upside on recommendations and new price targets of professional analysts.
CubeSmart (NYSE: CUBE) shares last traded at $24.68, a drop of $0.05 per share or -0.22% compared to the previous closing price. Opening at $24.77, they ranged from $24.67 and $24.90 throughout the day.
CubeSmart (NYSE: CUBE) currently has a market cap of 4.44B.
CubeSmart (NYSE: CUBE) Average Daily Trading Volume
172,337 shares traded hands yesterday, below normal, out of a total float 179,182,000. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to identify substantial volume accumulation or circulation by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
CubeSmart (NYSE: CUBE) 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.
Traders are able to make make the best trades when they follow the activity of professional investors.
With that in mind, CubeSmart (NYSE: CUBE) now has a 50-day MA of $26.00 and 200-day MA of $28.69. It has traded in a 52-week range between $24.48 – 33.5200 and today’s last price is 26.38%% lower than the 52 week high of $33.52.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.