Itau Unibanco Holding S.A. (NYSE: ITUB) shares rose in value Thursday December 29 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks were little changed in early trade Thursday. The S&P 500 SPX, +0.04% rose 0.1% to 2,252, while the Dow DJIA, +0.04% advanced 16 points to 19,850. The Nasdaq Composite COMP, -0.04% was virtually flat at 5,439.
Analysts at Zacks Investment Research upgraded shares of Itau Unibanco Holding S.A. (NYSE: ITUB) from Hold to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $10.31 is higher than the opening price of $10.21, resulting a number of other analysts to report on the company in recent days. Looking back over the last 52 weeks, Itau Unibanco Holding S.A. stock has a high of $12.19. Usually, after analysts assign an upgrade report on a stock, they will subsequently issue sporadic revisions, usually followed by a price target change.
Shares of Itau Unibanco Holding S.A. (NYSE: ITUB) opened at $10.21 on Tuesday trading between $10.20 and $10.28, and last traded at $10.25, which represents an increase of $0.06 or 0.54% compared to the previous closing price.
Itau Unibanco Holding S.A. (NYSE: ITUB) currently has a market cap of 66.91B.
Itau Unibanco Holding S.A. (NYSE: ITUB) Average Daily Trading Volume
The stock’s average daily volume is 14,480,700 shares out of a total float 3,225,424,000 and some 2,279,847 shares traded hands yesterday, below the average. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify large volume accumulation or circulation by institutional investors.
While an increase in trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
Itau Unibanco Holding S.A. (NYSE: ITUB) 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 marking the activity of these professional investors—and the moving averages they affect— traders can make educated trades.
With that in mind, Itau Unibanco Holding S.A. (NYSE: ITUB) now has a 50-day MA of $10.06 and 200-day MA of $9.92. It has traded in a 52-week range between $4.98 – 12.190 and today’s last price is 15.96%% lower than the 52 week high of $12.19.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% over 3 consecutive years.
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