SunTrust Banks Inc. (NYSE: STI) 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, boosting the price target of stock.
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.
SunTrust Banks Inc. (NYSE: STI) had its price target increased by equities researchers at FBR & Co from $0.00 to $65.00. FBR & Co currently has a rating of Outperform on the stock. The one-year price target of $58.28 is higher than the opening price of $54.91, resulting a number of other analysts to issue statements on the stock in recent days. Looking back over the last year, SunTrust Banks Inc. stock has a high of $56.97.
Shares of SunTrust Banks Inc. (NYSE: STI) opened at $54.91 yesterday and traded in a range between, $54.73 and $55.33, and last traded at $55.24, a jump of $0.40 over the previous closing price.
SunTrust Banks Inc. (NYSE: STI) now has a market cap of 27.13B.
SunTrust Banks Inc. (NYSE: STI) Average Daily Trading Volume
447,570 shares traded hands yesterday, 96 percent below the average, out of a total float 489,567,000. 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.
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.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
SunTrust Banks Inc. (NYSE: STI) 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 investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, SunTrust Banks Inc. (NYSE: STI) now has a 50-day MA of $55.03 and 200-day MA of $47.23. It has traded in a 52-week range between $31.07 – 56.97 and today’s last price is 3.04%% lower than the 52 week high of $56.97.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings at least 25% or more for the past 3 years.
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