Fidelity National Financial, Inc. (FNF) Shares Slip, Investors Watching Closely, Here is Why

Fidelity National Financial, Inc. (NYSE: FNF) shares rose on Wednesday Jan 4 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, U.S. stocks opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.

The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.

Shares of Fidelity National Financial, Inc. (NYSE: FNF) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Sell on the shares, Fidelity National Financial, Inc. has a 52-week high of $38.50. As a means of comparison, a number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $42.33, higher than the opening price of $34.12. Downgrades occur when analysts feel that the future prospects for the security have weakened from the initial recommendation, usually due to a considerable and fundamental digression in the company’s procedures, future direction or industry.

Shares of Fidelity National Financial, Inc. (NYSE: FNF) opened at $34.12 on Tuesday and has traded in a range between, $34.01 and $34.38, and last traded at $34.31, which is a spike of $0.34 or 0.01 from the previous closing price.

Fidelity National Financial, Inc. (NYSE: FNF) now has a market cap of 9.33B.

Fidelity National Financial, Inc. (NYSE: FNF) Average Daily Trading Volume

50,520 shares crossed the trading desk yesterday, lower than the norm, out of a total float 260,583,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution 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 show 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.

These professional investors retain teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you are researching.

Fidelity National Financial, Inc. (NYSE: FNF) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

Trades for Fidelity National Financial, Inc. (NYSE: FNF) have ranged from $28.24 – 38.50, and the stock now has a 50-day MA of $33.53 and 200-day MA of $35.86. Today’s last price is 0.11% below the 52 week high of $38.50.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings at least 25% or more for the past 3 years.

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