The Travelers Companies, Inc. (NYSE: TRV) shares fell in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
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%.
The Travelers Companies, Inc. (NYSE: TRV) had its Hold rating reiterated by equities researchers at Barclays PLC in a research note to investors. Barclays PLC currently has a rating of Hold on the stock. The one-year price target of $118.75 is above the opening price of $118.15, that has caused a fair amount of other analysts to comment on the stock in recent days. Looking back over the last 52 weeks, The Travelers Companies, Inc. stock has a high of $123.09. Usually, after analysts give a “reiterated rating” report on a stock, they will later issue sporadic revisions, such as a price target change.
Shares of The Travelers Companies, Inc. (NYSE: TRV) opened at $118.15 yesterday trading between $117.46 and $118.25, and last traded at $117.83, a dip of $0.44 compared to the previous closing price.
The Travelers Companies, Inc. (NYSE: TRV) now has a market cap of 33.47B.
The Travelers Companies, Inc. (NYSE: TRV) Average Daily Trading Volume
205,595 shares traded hands yesterday, 62 percent lower than the norm, out of a total float 283,220,000. 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.
While increased trading for short periods will not mean much will not mean much, however, 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
The Travelers Companies, Inc. (NYSE: TRV) 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.
Trades for The Travelers Companies, Inc. (NYSE: TRV) have ranged from $101.23 – 123.09, and the stock now has a 50-day MA of $118.33 and 200-day MA of $115.63. Today’s last price is 4.27%% below the 52 week high of $123.09.
Earnings growth is a crucial factor to consider when investing in stocks and investors watch for companies that have increased their earnings by at least 25% for 3 consecutive years.
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