Carnival Corp. (NYSE: CCL) shares fell on Monday Dec 19 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 Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Analysts at Berenberg Bank downgraded shares of Carnival Corp. (NYSE: CCL) from Buy to Hold in a research note to investors today. Berenberg Bank currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have issued reports on the stock recently, and the company has secured a consensus one-year price target of $55.59, above the opening price of $50.90, a difference of 10.90 percent. Carnival Corp. stock has a 52-week high of $55.77. Material and crucial changes in the company’s procedures, future direction or industry can cause downgrades as the analysts feel that the future prospects for the security have dropped from the initial recommendation.
Carnival Corp. (NYSE: CCL) shares last traded at $51.01, which is a decrease of $0.49 per share or -0.95% from the previous closing price. Opening at $50.90, they fluctuated from $50.77 and $51.34 throughout the day.
Carnival Corp. (NYSE: CCL) currently has a market cap of 37.24B.
Carnival Corp. (NYSE: CCL) Average Daily Trading Volume
560,672 shares traded hands yesterday, below normal, out of a total float 569,750,000. Swing traders often use increases in trading volume to identify substantial volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
As with all possible breakouts, investors watch for volume to be at least 40%-50% greater than 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 teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you are considering.
Carnival Corp. (NYSE: CCL) 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 following the activity of these professional investors—and the moving averages they influence— traders can make educated trades.
With that in mind, Carnival Corp. (NYSE: CCL) now has a 50-day MA of $50.97 and 200-day MA of $47.69. It has traded in a 52-week range between $40.52 – 55.77 and today’s last price is 8.54%% lower than the 52 week high of $55.77.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have raised their earnings by at least 25% for a 3 year period.
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