Culp Inc. (NYSE: CFI) shares rose on Monday Dec 5 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Culp Inc. (NYSE: CFI) had its price target increased by equities researchers at Stifel Nicolaus from $36.00 to $38.00. Stifel Nicolaus currently has a rating of Buy on the stock. The one-year price target of $38.00 is higher than the opening price of $32.85, resulting a number of other analysts to comment on the company in recent days. Looking back over the last year, Culp Inc. stock has a high of $34.88.
Shares of Culp Inc. (NYSE: CFI) opened at $32.85 on Tuesday trading between $32.70 and $33.25, and last traded at $33.25, a jump of $0.80 or 2.47% compared to the previous closing price.
Culp Inc. (NYSE: CFI) currently has a market cap of 409.17M.
Culp Inc. (NYSE: CFI) Average Daily Trading Volume
The stock’s average daily volume is 45,813 shares out of a total float 9,645,000 and some 6,312 shares crossed the trading desk yesterday, below the average. Investors often use upticks in trading volume to identify large volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
While an increase in trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are researching.
Culp Inc. (NYSE: CFI) 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 Culp Inc. (NYSE: CFI) have ranged from $22.61 – 34.88, and the stock now has a 50-day MA of $30.87 and 200-day MA of $29.52. Today’s last price is 4.67%% lower than the 52 week high of $34.88.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for a 3 year period.
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