Centene Corp. (NYSE: CNC) shares rose in value Monday Nov 14 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close. The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Sanford C. Bernstein upgraded shares of Centene Corp. (NYSE: CNC) from Market Perform to Outperform today. With a rating of Outperform on the stock, the company has a 52-week high of $75.57. The one-year price target of $78.06 is above the opening price of $51.40, that has caused a number of other analysts to comment on the stock in recent days. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
Centene Corp. (NYSE: CNC) shares last traded at $51.57, which is a jump of $0.89 or 1.76% over the previous closing price. Opening at $51.40, they varied from $51.21 and $52.48 throughout the day.
Centene Corp. (NYSE: CNC) currently has a market cap of 8.81B.
Centene Corp.Average Daily Trading Volume
The stock’s average daily volume is 1,558,580 shares out of a total float 165,703,000 and some 4,084,785 shares traded hands yesterday, higher than normal. Significant expansions in trading volume and price growth together could indicate heavy volume aggregation 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 indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain 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.
Centene Corp. 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 investors to make those trends work in their favor and increase the number of winning trades.
Trades for Centene Corp. (NYSE: CNC) have ranged from $47.36 – 75.57, and the stock now has a 50-day MA of $62.58 and 200-day MA of $65.83. Today’s last price is 31.76%% lower than the 52 week high of $75.57.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings by at least 25% over 3 consecutive years.
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