Caterpillar, Inc. (NYSE: CAT) shares rose in value on Monday February 13 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Analysts at Vetr Inc. upgraded shares of Caterpillar, Inc. (NYSE: CAT) from Buy to Strong-Buy today. The company currently has a rating of Strong-Buy on the stock. The one-year price target of $93.73 is less than the opening price of $97.69, causing a number of other analysts to issue statements on the stock recently. Looking back over the last 52 weeks, Caterpillar, Inc. stock has a high of $99.46. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Caterpillar, Inc. (NYSE: CAT) opened at $97.69 yesterday and traded in a range between, $97.16 and $98.36, and last traded at $97.79, an increase of $1.48 from the previous closing price.
Caterpillar, Inc. (NYSE: CAT) now has a market cap of 57.29B.
Caterpillar, Inc. (NYSE: CAT) Average Daily Trading Volume
The stock’s average daily volume is 4,494,150 shares out of a total float 584,757,000 and some 1,032,740 shares traded hands yesterday, 32 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Caterpillar, Inc. (NYSE: CAT) 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 successful trades.
With that in mind, Caterpillar, Inc. (NYSE: CAT) now has a 50-day MA of $94.39 and 200-day MA of $88.77. It has traded in a 52-week range between $61.82 – 99.46 and today’s last price is 1.68%% lower than the 52 week high of $99.46.
Earnings growth is a crucial factor to research when investing in stocks and investors watch for companies that have raised their earnings by at least 25% over the past 3 years.
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