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Upgrade Alert for Capstead Mortgage (CMO)

By James Quinn

Capstead Mortgage (NYSE:CMO) was upgraded from Market Perform to Outperform at Wells Fargo today. The stock closed yesterday at $9.96 on volume of 3.1 million shares, above average daily volume of 826,000.

Capstead Mortgage has overhead space with shares priced $9.97, or 12.7% below the average consensus analyst price target of $11.42. The stock should discover initial support at its 200-day moving average (MA) of $9.81 and subsequent support at its 50-day MA of $9.76.

Over the past year, Capstead Mortgage has traded in a range of $7.48 to $11.97 and closed yesterday at $9.97, 33% above that low. Over the past week, the 200-day moving average (MA) has gone down 0.4% while the 50-day MA has remained constant.

Capstead Mortgage Corporation is a real estate investment trust and earns income from investing in real-estate related assets on a leveraged basis. The Company's investments currently consist primarily of residential ARM securities issued and guaranteed by government-sponsored entities.

SmarTrend recommended that subscribers consider buying shares of Capstead Mortgage on January 28th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $8.84. Since that recommendation, shares of Capstead Mortgage have risen 10.0%. We continue to monitor CMO for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: analyst upgrades/downgrades capstead mortgage

Ticker(s): CMO