The Travelers Companies, Inc. (NYSE: TRV) 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.
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.
Shares of The Travelers Companies, Inc. (NYSE: TRV) were downgraded by analysts at Goldman Sachs Group, Inc. (The) in a note to their investors today. With a rating of Sell on the shares, the company has a 52-week high of $123.09. The one-year price target of $118.75 is above the opening price of $116.69, causing a number of other analysts to report on the stock in recent days. Downgrades happen when analysts consider that the future prospects for the security have dropped from the initial recommendation, often because of a material and fundamental digression in the company’s actions, future vision or industry.
Yesterday The Travelers Companies, Inc. (NYSE: TRV) shares last traded at $117.12, a dip of $0.20 compared to the previous closing price. Opening at $116.69, they ranged from $116.45 and $117.19 throughout the day.
The Travelers Companies, Inc. (NYSE: TRV) now has a market cap of 33.27B.
The Travelers Companies, Inc. (NYSE: TRV) Average Daily Trading Volume
211,082 shares crossed the trading desk yesterday, 14 percent lower than the average, 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 professional investors retain substantial teams of analysts that investigate thousands of stocks. So 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning 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 $118.50 and 200-day MA of $115.71. Today’s last price is 4.85%% below the 52 week high of $123.09.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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