PacWest Bancorp (NASDAQ: PACW) shares rose on Friday January 20 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
Meanwhile, U.S. stocks rose Friday morning as Wall Street closely awaited Donald Trump’s inauguration as the nation’s 45th president.
The Dow Jones Industrial Average DJIA, +0.41% rose 95 points, or 0.5%, to 19,826, while the S&P 500 index SPX, +0.41% climbed 11 points, or 0.5%, to 2,275 and the Nasdaq Composite COMP, +0.37% added 28 points, or 0.6%, to 5,571.
PacWest Bancorp (NASDAQ: PACW) had its price target boosted by equities researchers at FIG Partners from $0.00 to $60.50. The company currently has a rating of on the shares. A number of other analysts have issued reports on the company recently, and PacWest Bancorp has secured a consensus one-year price target of $58.30, higher than the opening price of $53.15, a difference of 10.86 percent. PacWest Bancorp stock has a 52-week high of $56.46.
Yesterday PacWest Bancorp (NASDAQ: PACW) shares last traded at $53.66, which is an increase of $0.62 from the previous closing price. Opening at $53.15, they varied from $53.06 and $53.90 throughout the day.
PacWest Bancorp (NASDAQ: PACW) now has a market cap of 6.38B.
PacWest Bancorp (NASDAQ: PACW) Average Daily Trading Volume
66,710 shares crossed the trading desk yesterday, 44 percent below normal, out of a total float 116,944,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
PacWest Bancorp (NASDAQ: PACW) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, PacWest Bancorp (NASDAQ: PACW) now has a 50-day MA of $54.39 and 200-day MA of $45.88. It has traded in a 52-week range between $29.05 – 56.46 and today’s last price is 4.96%% lower than the 52 week high of $56.46.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more over a 3 year period.
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