RenaissanceRe Holdings Ltd. (NYSE: RNR) shares fell on Monday Nov 21 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 were set to open up this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Analysts at Deutsche Bank AG downgraded shares of RenaissanceRe Holdings Ltd. (NYSE: RNR) from Buy to Hold in a research note to investors today. The company currently has a rating of Hold on the shares. A number of other analysts have issued reports on the stock in recent days, and RenaissanceRe Holdings Ltd. has earned a consensus one-year price target of $120.00, less than the opening price of $130.87, a difference of 9.12 percent. RenaissanceRe Holdings Ltd. stock has a 52-week high of $132.43. Important and major changes in the company’s actions, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the original recommendation.
RenaissanceRe Holdings Ltd. (NYSE: RNR) shares last traded at $131.52, which represents a dip of $0.27 per share or -0.20% compared to the previous closing price. Opening at $130.87, they varied from $130.87 and $131.74 throughout the day.
RenaissanceRe Holdings Ltd. (NYSE: RNR) now has a market cap of 5.41B.
RenaissanceRe Holdings Ltd. (NYSE: RNR) Average Daily Trading Volume
The stock’s average daily volume is 251,632 shares out of a total float 40,195,000 and some 17,909 shares crossed the trading desk yesterday, below the norm. 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.
While an increase in trading for short periods 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 very important.
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 teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
RenaissanceRe Holdings Ltd. (NYSE: RNR) 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.
Traders can make well planned trades when they track the trading habits of professional investors.
With that in mind, RenaissanceRe Holdings Ltd. (NYSE: RNR) now has a 50-day MA of $124.41 and 200-day MA of $118.42. It has traded in a 52-week range between $107.27 – 132.430 and today’s last price is 0.69%% lower than the 52 week high of $132.43.
Earnings growth is a crucial factor to research when buying stocks and investors seek companies that have raised their earnings at least 25% or more for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.