Chubb Corp. (NYSE: CB) shares rose in value Tuesday Dec 13 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at Zacks Investment Research upgraded shares of Chubb Corp. (NYSE: CB) from Hold to Buy today. With a rating of Buy on the stock, Chubb Corp. has a 52-week high of $133.89. A number of other analysts have commented on the stock recently, and Chubb Corp. has earned a consensus one-year price target of $138.76, above the opening price of $133.41. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Chubb Corp. (NYSE: CB) shares last traded at $133.22, an increase of $0.36 or 0.27% from the previous closing price. Opening at $133.41, they fluctuated from $133.12 and $133.89 throughout the day.
Chubb Corp. (NYSE: CB) currently has a market cap of 61.99B.
Chubb Corp. (NYSE: CB) Average Daily Trading Volume
The stock’s average daily volume is 1,612,920 shares out of a total float 462,263,000 and some 275,393 shares crossed the trading desk yesterday, below normal. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to determine large volume aggregation or dissemination by institutional investors.
As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to indicate 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 professional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.
Chubb Corp. (NYSE: CB) 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.
Traders can make well planned trades when they follow the trading habits of professional investors.
With that in mind, Chubb Corp. (NYSE: CB) now has a 50-day MA of $126.98 and 200-day MA of $126.47. It has traded in a 52-week range between $106.82 – 133.89 and today’s last price is 0.50%% lower than the 52 week high of $133.89.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more for a 3 year period.
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