Old National Bancorp (NASDAQ: ONB) shares slid back in value in early trading today on slower 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 opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Analysts at Zacks Investment Research upgraded shares of Old National Bancorp (NASDAQ: ONB) from Hold to Strong-Buy today. With a rating of Strong-Buy on the shares, Old National Bancorp has a 52-week high of $18.55. The one-year price target of $17.25 is a decrease compared to the opening price of $17.80, causing a number of other analysts to issue statements on the company recently. Stock prices often shift to the upside on recommendations and new price targets of professional analysts.
Yesterday Old National Bancorp (NASDAQ: ONB) shares last traded at $17.75, which represents a decrease of $0.15 compared to the previous closing price. Opening at $17.80, they fluctuated from $17.65 and $17.85 throughout the day.
Old National Bancorp (NASDAQ: ONB) now has a market cap of 2.40B.
Old National Bancorp (NASDAQ: ONB) Average Daily Trading Volume
26,028 shares crossed the trading desk yesterday, 75 percent lower than normal, out of a total float 132,993,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
Old National Bancorp (NASDAQ: ONB) 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 Old National Bancorp (NASDAQ: ONB) have ranged from $10.69 – 18.55, and the stock now has a 50-day MA of $17.74 and 200-day MA of $14.73. Today’s last price is 4.31%% under the 52 week high of $18.55.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more over a 3 year period.
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