E*TRADE Financial Corporation (NASDAQ: ETFC) shares rose in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
Analysts at Goldman Sachs Group, Inc. (The) upgraded shares of E*TRADE Financial Corporation (NASDAQ: ETFC) from Neutral to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $37.00. The one-year price target of $38.34 is higher than the opening price of $36.84, resulting a number of other analysts to issue statements on the company in recent days. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of E*TRADE Financial Corporation (NASDAQ: ETFC) opened at $36.84 yesterday and traded in a range between, $36.51 and $36.85, and last traded at $36.77, which is a spike of $0.31 from the previous closing price.
E*TRADE Financial Corporation (NASDAQ: ETFC) now has a market cap of 10.09B.
E*TRADE Financial Corporation (NASDAQ: ETFC) Average Daily Trading Volume
285,246 shares crossed the trading desk yesterday, 9 percent lower than normal, out of a total float 273,505,000. 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 one day 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
E*TRADE Financial Corporation (NASDAQ: ETFC) 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 E*TRADE Financial Corporation (NASDAQ: ETFC) have ranged from $19.61 – 37.00, and the stock now has a 50-day MA of $35.01 and 200-day MA of $28.77. Today’s last price is 0.62%% lower than the 52 week high of $37.00.
Indeed, earnings growth is among the most important 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 over 3 consecutive years.
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