E-Trade Financial Corp. (NASDAQ: ETFC) shares rose in value Monday Dec 19 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Analysts at SunTrust Banks Inc. upgraded shares of E-Trade Financial Corp. (NASDAQ: ETFC) from Hold to Buy today. SunTrust Banks Inc. currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have spoken on the stock recently, and the company has secured a consensus one-year price target of $36.34, higher than the opening price of $34.86. E-Trade Financial Corp. stock has a 52-week high of $36.04. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of E-Trade Financial Corp. (NASDAQ: ETFC) opened at $34.86 on Tuesday trading between $34.60 and $34.93, and last traded at $34.63, which represents a spike of $0.07 or 0.20% over the previous closing price.
E-Trade Financial Corp. (NASDAQ: ETFC) currently has a market cap of 9.50B.
E-Trade Financial Corp. (NASDAQ: ETFC) Average Daily Trading Volume
The stock’s average daily volume is 3,382,410 shares out of a total float 273,505,000 and some 366,759 shares crossed the trading desk yesterday, below the average. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to determine large volume accumulation or dissemination by institutional investors.
While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
E-Trade Financial Corp. (NASDAQ: ETFC) 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 E-Trade Financial Corp. (NASDAQ: ETFC) have ranged from $19.61 – 36.04, and the stock now has a 50-day MA of $32.81 and 200-day MA of $27.90. Today’s last price is 3.91%% under the 52 week high of $36.04.
Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have increased their earnings by at least 25% for a 3 year period.
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