Cloud Peak Energy (CLD) Stock: Gaining With Institutional Interest In Focus

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Cloud Peak Energy Inc. (NYSE: CLD) is getting quite a bit of attention in the market this morning. However, with no recent news out, a clear catalyst is difficult to find. Nonetheless, there is a reason for the gains. Today, we’ll talk about:

  • Why CLD stock is headed up;
  • what we’re seeing from the stock; and
  • what we’ll be watching for ahead.

Here’s Why CLD Is Gaining!

As mentioned above, Cloud Peak Energy is having a pretty strong day in the market today, but with no news out, the catalyst is difficult to find. After doing a bit of digging, we believe that the gains seen on the stock are two-fold today. Here’s what’s happening:

Institutional Interest – First and foremost, investors seem to be focusing on institutional interest on message boards today, and it’s hard to argue that institutional interest surrounding CLD stock is strong. In fact, according to NASDAQ, there are 76 million shares outstanding, 77.92% of which are owned by institutional investors.

At the end of the day, institutional interest is a key factor that investors pay close attention to. After all, institutions manage massive amounts of money, and making the right decisions in the market is the only way that they stay alive. So, when institutional interest is strong, there’s a strong inclination that gains are ahead.

Oil Prices – Another factor that seems to play a role here is the price of oil. While CLD focuses on the mining of coal, the company is centered in the energy industry. Therefore, the stock is largely at the mercy of the industry’s biggest commodity, oil.

At the moment, a wave of bullish news is hitting oil, sending prices up. In fact, the price of the commodity hit a two-week high yesterday as severe outages in Venezuela and ongoing production cuts from OPEC took centr stage.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. While the company hasn’t issued any news of its own, the recent news surrounding oil is sending multiple stocks across the energy sector up.

Moreover, while the attention is on Cloud Peak Energy, investors are starting to focus on the strong institutional interest seen in the stock. Considering these factors, it’s not surprising to see that it is headed upward.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:06), CLD is trading at $0.50 per share after a gain of $0.03 per share or 6.38% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on CLD. In particular, we’re interested in following the story surrounding the company’s continued work to take advantage of the change in tides in the energy industry. We’ll also continue to follow institutional interest as it is quite high. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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