ServisFirst Bancshares, Inc. (NASDAQ: SFBS) shares rose on Tuesday January 31 on lighter 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, The Dow Jones Industrial Average DJIA, -0.60% fell 140 points, or 0.7%, to 19,833, with 26 of the 30 blue-chip companies trading lower. Nike, Inc. NKE, -1.10% down 2.4% and Intel Corp. INTC, -1.70% off 1%, were leading losses.
The S&P 500 SPX, -0.33% was off by 10 points, or 0.5%, to 2,270 with seven of the 11 main sectors trading lower. Industrials, consumer-discretionary, and technology shares were the worst performers, while real estate and utilities stocks attracted buyers.
The health-care sector, which was down in early trade, rebounded after President Trump called for scaling back drugmaker’s regulation, lowering taxes and prices of medicines.
The Nasdaq Composite COMP, -0.25% declined 31 points, or 0.6%, to 5,581.
ServisFirst Bancshares, Inc. (NASDAQ: SFBS) had its price target raised by equities researchers at Hovde Group from $31.50 to $37.00. Hovde Group currently has a rating of Underperform on the shares. The one-year price target of $35.33 is lower than the opening price of $38.30, that has caused a number of other analysts to report on the company in recent days. Looking back over the last year, ServisFirst Bancshares, Inc. stock has a high of $40.35.
Shares of ServisFirst Bancshares, Inc. (NASDAQ: SFBS) opened at $38.30 yesterday and traded in a range between, $38.23 and $40.35, and last traded at $39.58, which is a jump of $1.52 over the previous closing price.
ServisFirst Bancshares, Inc. (NASDAQ: SFBS) now has a market cap of 2.08B.
ServisFirst Bancshares, Inc. (NASDAQ: SFBS) Average Daily Trading Volume
The stock’s average daily volume is 263,435 shares out of a total float 44,380,000 and some 36,274 shares traded hands yesterday, 112 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
ServisFirst Bancshares, Inc. (NASDAQ: SFBS) 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.
With that in mind, ServisFirst Bancshares, Inc. (NASDAQ: SFBS) now has a 50-day MA of $37.45 and 200-day MA of $30.13. It has traded in a 52-week range between $17.06 – 40.35 and today’s last price is 1.91%% lower than the 52 week high of $40.35.
Earnings growth is a critical factor to research when investing in stocks and investors seek companies that have increased their earnings at least 25% or more for the past 3 years.
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