Analysts at Vetr Inc. downgraded shares of Southern Copper Corp. (NYSE: SCCO) from Buy to Hold in a research note to investors today. For comparison, a number of other analysts have commented on the company recently, and the company currently has a consensus one-year price target of $28.89, higher than the opening price of $26.21, a difference of 2.68 percent.
Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Downgrades occur when analysts feel that the future prospects for the security have weakened from the original recommendation, usually due to a material and fundamental change in the company’s operations, future outlook or industry.
Meanwhile, all three major indices posted gains on Monday, shaking off ambiguous comments made by Fed Chairwoman Janet Yellen on Friday concerning monetary policy, namely, interest rate hikes for the remainder of 2016.
The Dow Jones Industrial Average DJIA, +0.58% gained 107.59 points, or 0.6%, to close at 18,502.99.
The S&P 500 index SPX, +0.52% rose 11.34 points, or 0.5%, to settle at 2,180.38.
Meanwhile, the Nasdaq Composite Index COMP, +0.26% added 13.41 points, or 0.3%, to close at 5,232.33.
However not all investors are at peace with Yellen’s comments.
U.S. stocks have searched for direction thus far today, with investors playing a waiting game in the run-up to the key jobs report later this week, as they consider the prospects for an interest rate rise.
Shares of Southern Copper Corp. (NYSE: SCCO) opened at $26.21 and traded in a range between, $25.94 and $26.29 yesterday, and last traded at $25.99, which represents a change of $ -0.26 over the previous closing price.
Southern Copper Corp. (NYSE: SCCO) now has a market cap of 20.11B
By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind Southern Copper Corp. (NYSE: SCCO) now has a 50-day MA is $26.20 and 200-day MA is $26.74, and it has traded in a 52-week range between $21.55 – 31.31 and yesterday’s last price was -16.99 percent off the 52 week high of $31.31.
The stocks average daily volume is 1,336,060 shares out of a total float 83,352,000 of and some 102,045 shares crossed the trading desk yesterday, 78 percent lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Earnings growth is an important factor to research when buying stocks and investors look for companies that have grown their earnings at least 25% or more for the past 3 years.
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