CalAtlantic Group, Inc. (CAA) Stock Down After Price Target Increase at FBR & Co

CalAtlantic Group, Inc. (NYSE: CAA) shares were down on Tuesday February 14 on lighter 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 U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.

The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.

CalAtlantic Group, Inc. (NYSE: CAA) had its price target boosted by equities researchers at FBR & Co from $0.00 to $39.00. The company currently has a rating of on the stock. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and CalAtlantic Group, Inc. has earned a consensus one-year price target of $39.73, above the opening price of $34.05, a difference of 11.60 percent. CalAtlantic Group, Inc. stock has a 52-week high of $40.94.

Yesterday CalAtlantic Group, Inc. (NYSE: CAA) shares last traded at $34.25, which represents a dip of $0.05 over the previous closing price. Opening at $34.05, they varied from $34.05 and $34.33 throughout the day.

CalAtlantic Group, Inc. (NYSE: CAA) currently has a market cap of 3.95B.

CalAtlantic Group, Inc. (NYSE: CAA) Average Daily Trading Volume

83,447 shares crossed the trading desk yesterday, 53 percent below the average, out of a total float 71,241,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than 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.

These professional investors have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.

CalAtlantic Group, Inc. (NYSE: CAA) 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 CalAtlantic Group, Inc. (NYSE: CAA) have ranged from $26.97 – 40.9400, and the stock now has a 50-day MA of $34.36 and 200-day MA of $34.15. Today’s last price is 16.34%% below the 52 week high of $40.94.

Earnings growth is a critical factor to research when buying stocks and investors identify companies that have raised their earnings at least 25% or more over a 3 year period.

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