ITT Corp. (NYSE: ITT) shares fell on Friday Dec 2 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, U.S. stocks edged lower on Friday, with major indexes on track for a weekly decline.
The Dow Jones Industrial Average DJIA, -0.14% fell 23 points, or 0.1%, to 19,169, while the S&P 500 SPX, +0.09% lost 1.2 point to 2,190, a move of less than 0.1%. The Nasdaq Composite COMP, -0.15% fell 5.3 points, or 0.1%, to 5,247.
Analysts at Aegis initiated coverage on ITT Corp. (NYSE: ITT) stock, starting the company at Buy. With a rating of Buy on the stock, ITT Corp. has a 52-week high of $42.24. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and ITT Corp. has earned a consensus one-year price target of $39.33, lower than the opening price of $41.96. Price changes targets are not unheard of as analysts and brokerage firms will issue periodic updates after initiating coverage,.
Shares of ITT Corp. (NYSE: ITT) opened at $41.96 on Tuesday and has traded in a range between, $41.26 and $42.05, and last traded at $41.50, a decrease of $0.46 per share or -1.10% over the previous closing price.
ITT Corp. (NYSE: ITT) currently has a market cap of 3.66B.
ITT Corp. (NYSE: ITT) Average Daily Trading Volume
The stock’s average daily volume is 635,710 shares out of a total float 88,142,000 and some 49,269 shares crossed the trading desk yesterday, lower than the average. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to determine heavy volume accumulation or circulation by institutional investors.
As with all possible 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 instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are considering.
ITT Corp. (NYSE: ITT) 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 investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, ITT Corp. (NYSE: ITT) now has a 50-day MA of $36.50 and 200-day MA of $34.93. It has traded in a 52-week range between $29.15 – 42.24 and today’s last price is 1.75%% lower than the 52 week high of $42.24.
Earnings growth is an important factor to research when buying stocks and investors look for companies that have raised their earnings by at least 25% over the past 3 years.
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.