CYS Investments Inc. (CYS) Stock Moves Down and Here’s Why

CYS Investments Inc. (NYSE: CYS) shares fell on Tuesday Dec 13 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.

The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.

Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting

Analysts at Keefe, Bruyette & Woods downgraded shares of CYS Investments Inc. (NYSE: CYS) from Outperform to Market Perform in a research note to investors today. With a rating of Market Perform on the shares, CYS Investments Inc. has a 52-week high of $9.21. The one-year price target of $8.89 is above the opening price of $8.01, resulting a number of other analysts to report on the company recently. Material and crucial changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the initial recommendation.

CYS Investments Inc. (NYSE: CYS) shares last traded at $7.97, a drop of $0.09 per share or -1.06% compared to the previous closing price. Opening at $8.01, they fluctuated from $7.95 and $8.05 throughout the day.

CYS Investments Inc. (NYSE: CYS) currently has a market cap of 1.21B.

CYS Investments Inc. (NYSE: CYS) Average Daily Trading Volume

The stock’s average daily volume is 1,460,800 shares out of a total float 149,651,000 and some 487,532 shares traded hands yesterday, below the average. Trading volume is likely to increase in the next few days as momentum traders often use swings in trading volume to pinpoint large volume accumulation or distribution by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to indicate 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.

Professional investors such as these retain teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.

CYS Investments Inc. (NYSE: CYS) 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 successful trades.

Trades for CYS Investments Inc. (NYSE: CYS) have ranged from $5.88 – 9.210, and the stock now has a 50-day MA of $8.21 and 200-day MA of $8.52. Today’s last price is 13.52%% below the 52 week high of $9.21.

Indeed, earnings growth is among the most critical 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.

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