Shares of Chicago Bridge & Iron Co. (NYSE: CBI) were downgraded by analysts at Johnson Rice in a note to their investors today. The company currently has a rating of Hold on the stock. The one-year price target of $39.64 is above the opening price of $26.57, causing a fair amount of other analysts to comment on the company recently. Looking back over the last year, Chicago Bridge & Iron Co. stock has a high of $46.39. Downgrades happen when analysts consider that the future prospects for the security have diminished from the original recommendation, usually caused by a considerable and integral digression in the company’s operations, future outlook or industry.
The Fed stood pat on interest rates on Wednesday, helping stocks to mostly higher levels but Chairwoman Janet Yellen indicated an interest rate hike is likely by year’s end
On Wednesday, the S&P 500 SPX, +1.09% ended 1.1% higher, while the Dow DJIA, +0.90% jumped by 0.9%, or 164 points, as each exchange finished in positive territory for a second consecutive day.
The tech-heavy Nasdaq Composite COMP, +1.03% tacked on 1% and scored a record closing high.
S&P 500 futures ESZ6, +0.36% were up 6.55 points, or 0.3%, to 2,162.75 early Thursday, while Dow Jones Industrial Average futures YMZ6, +0.37% rose 58 points, or 0.3%, to 18,276. Nasdaq-100 futures NQZ6, +0.39% gained 16.25 points, or 0.3%, to 4,866.25.
Yesterday Chicago Bridge & Iron Co. (NYSE: CBI) shares last traded at $26.39, which represents a dip of $0.32 from the previous closing price. Opening at $26.57, they ranged from $26.12 and $26.68 throughout the day.
Chicago Bridge & Iron Co. (NYSE: CBI) currently has a market cap of 2.72B.
2,596,328 shares traded hands yesterday, higher than the average, out of a total float 101,542,000. Large gains in trading volume and price appreciation together could indicate heavy volume aggregation by institutional investors.
While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Chicago Bridge & Iron Co. (NYSE: CBI) have ranged from $26.12 – 46.39, and the stock now has a 50-day MA of $31.02 and 200-day MA of $35.31. Today’s last price is 0.43% under the 52 week high of $46.39.
Earnings growth is a crucial factor to consider when investing in stocks and investors identify companies that have increased their earnings at least 25% or more over 3 consecutive years.
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