Synovus Financial Corp. (NYSE: SNV) shares fell in early trading yesterday 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 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 Hovde Group downgraded shares of Synovus Financial Corp. (NYSE: SNV) from Outperform to Market Perform in a research note to investors today. With a rating of Market Perform on the shares, Synovus Financial Corp. has a 52-week high of $42.07. The one-year price target of $40.38 is lower than the opening price of $41.27, that has caused a number of other analysts to comment on the stock in recent days. Downgrades happen when analysts believe that the future prospects for the security have weakened from the original recommendation, often caused by an important and major change in the company’s actions, future direction or industry.
Yesterday Synovus Financial Corp. (NYSE: SNV) shares last traded at $41.23, a dip of $0.41 compared to the previous closing price. Opening at $41.27, they varied from $40.88 and $41.31 throughout the day.
Synovus Financial Corp. (NYSE: SNV) currently has a market cap of 5.04B.
Synovus Financial Corp. (NYSE: SNV) Average Daily Trading Volume
97,473 shares traded hands yesterday, 57 percent lower than normal, out of a total float 120,534,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
Synovus Financial Corp. (NYSE: SNV) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Synovus Financial Corp. (NYSE: SNV) now has a 50-day MA of $40.44 and 200-day MA of $33.99. It has traded in a 52-week range between $25.48 – 42.07 and today’s last price is 2.00%% lower than the 52 week high of $42.07.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% over a 3 year period.
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