Southern Copper Corporation (NYSE: SCCO) shares fell on Tuesday February 14 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
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.
Shares of Southern Copper Corporation (NYSE: SCCO) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Hold on the shares, the company has a 52-week high of $39.50. As a means of comparison, a number of other analysts have issued reports on the company recently, and Southern Copper Corporation has earned a consensus one-year price target of $33.47, a decrease compared to the opening price of $38.46. Important and integral changes in the company’s actions, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the initial recommendation.
Yesterday Southern Copper Corporation (NYSE: SCCO) shares last traded at $38.57, which is a drop of $0.07 from the previous closing price. Opening at $38.46, they varied from $38.38 and $38.70 throughout the day.
Southern Copper Corporation (NYSE: SCCO) now has a market cap of 29.81B.
Southern Copper Corporation (NYSE: SCCO) Average Daily Trading Volume
The stock’s average daily volume is 1,184,680 shares out of a total float 768,910,000 and some 139,455 shares traded hands yesterday, 96 percent lower than normal. 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.
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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Southern Copper Corporation (NYSE: SCCO) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Southern Copper Corporation (NYSE: SCCO) now has a 50-day MA of $35.96 and 200-day MA of $30.23. It has traded in a 52-week range between $23.54 – 39.50 and today’s last price is 2.35%% lower than the 52 week high of $39.50.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% for a 3 year period.
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