Fifth Third Bancorp (FITB) Stock Moves Down and Here’s Why

Fifth Third Bancorp (NASDAQ: FITB) shares rose on Thursday Nov 17 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”

The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.

Analysts at Robert W. Baird downgraded shares of Fifth Third Bancorp (NASDAQ: FITB) from Neutral to Underperform in a research note to investors today. The company currently has a rating of Underperform on the stock. A number of other analysts have commented on the stock in recent days, and the company has earned a consensus one-year price target of $22.89, a decrease compared to the opening price of $25.00, a difference of 9.10 percent. Fifth Third Bancorp stock has a 52-week high of $25.68. Important and major changes in the company’s operations, future direction or industry can cause downgrades as the analysts feel that the future prospects for the security have weakened from the original recommendation.

Fifth Third Bancorp (NASDAQ: FITB) shares last traded at $25.15, a spike of $0.25 or 1.00% over the previous closing price. Opening at $25.00, they fluctuated from $24.81 and $25.16 throughout the day.

Fifth Third Bancorp (NASDAQ: FITB) currently has a market cap of 19,003.69B.

Fifth Third Bancorp (NASDAQ: FITB) Average Daily Trading Volume

The stock’s average daily volume is 7,721,350 shares out of a total float 752,470,000 and some 1,311,898 shares traded hands yesterday, below the norm. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify large volume accumulation or circulation by institutional investors.

While an increase in 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 expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship just refers to 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 buying a stock you’re researching.

Fifth Third Bancorp (NASDAQ: FITB) 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 winning trades.

Trades for Fifth Third Bancorp (NASDAQ: FITB) have ranged from $13.84 – 25.68, and the stock now has a 50-day MA of $21.49 and 200-day MA of $19.48. Today’s last price is 2.06%% below the 52 week high of $25.68.

Earnings growth is a crucial factor to research when investing in stocks and investors seek companies that have raised their earnings at least 25% or more for a 3 year period.

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