KeyCorp (NYSE: KEY) shares rose on Monday January 23 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, U.S. stocks flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
Analysts at Zacks downgraded shares of KeyCorp (NYSE: KEY) from Buy to Hold in a research note to investors today. The company currently has a rating of Hold on the stock. The one-year price target of $19.81 is higher than the opening price of $17.86, causing a number of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, KeyCorp stock has a high of $18.77. Downgrades occur when analysts believe that the future prospects for the security have dropped from the original recommendation, often due to an important and fundamental change in the company’s operations, future vision or industry.
Yesterday KeyCorp (NYSE: KEY) shares last traded at $17.88, a spike of $0.02 from the previous closing price. Opening at $17.86, they ranged from $17.80 and $17.92 throughout the day.
KeyCorp (NYSE: KEY) currently has a market cap of 19.29B.
KeyCorp (NYSE: KEY) Average Daily Trading Volume
The stock’s average daily volume is 15,877,100 shares out of a total float 1,076,119,000 and some 1,170,698 shares crossed the trading desk yesterday, 107 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.
KeyCorp (NYSE: KEY) 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 traders to make those trends work in their favor and increase the number of winning trades.
Trades for KeyCorp (NYSE: KEY) have ranged from $9.88 – 18.770, and the stock now has a 50-day MA of $18.23 and 200-day MA of $14.28. Today’s last price is 4.77%% lower than the 52 week high of $18.77.
Earnings growth is a crucial factor to look at when investing in stocks and investors look for companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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