Barclays PLC (BCS) stock down despite upgrade at Deutsche Bank AG

Barclays PLC (NYSE: BCS) shares slid back in value in early trading today on lighter 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 edged lower Monday, with major indexes retreating from record levels.

The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.

Analysts at Deutsche Bank AG upgraded shares of Barclays PLC (NYSE: BCS) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $12.05. A number of other analysts have commented on the company recently, and the company has secured a consensus one-year price target of $11.10, lower than the opening price of $11.34, a difference of 9.80 percent. Share prices sometimes get a jump to the upside when analysts upgrade a stock.

Yesterday Barclays PLC (NYSE: BCS) shares last traded at $11.33, which represents a decrease of $0.21 over the previous closing price. Opening at $11.34, they fluctuated from $11.28 and $11.35 throughout the day.

Barclays PLC (NYSE: BCS) now has a market cap of 67.54B.

Barclays PLC (NYSE: BCS) Average Daily Trading Volume

507,972 shares crossed the trading desk yesterday, 105 percent below normal, out of a total float 5,257,593,000. 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, so it is good corroboration to see them taking a postion in a stock you are considering.

Barclays PLC (NYSE: BCS) 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 traders to make those trends work in their favor and increase the number of winning trades.

With that in mind, Barclays PLC (NYSE: BCS) now has a 50-day MA of $11.11 and 200-day MA of $9.24. It has traded in a 52-week range between $6.76 – 12.0500 and today’s last price is 5.97%% lower than the 52 week high of $12.05.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have grown their earnings at least 25% or more for 3 consecutive years.

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