Selective Insurance Group Inc. (NASDAQ: SIGI) shares rose in value Tuesday Nov 29 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks on Tuesday morning traded near break-even levels, with the main benchmarks switching in and out of negative territory
The Dow Jones Industrial Average DJIA, -0.09% was flat at 19,102. Meanwhile, the Nasdaq Composite COMP, +0.00% traded 18 points, or 0.1%, at 5,362.
The S&P 500 index SPX, -0.04% was off by 0.1%, or 2 points, at 2,199, with five of the 11 main sectors trading lower.
Analysts at Zacks Investment Research upgraded shares of Selective Insurance Group Inc. (NASDAQ: SIGI) from Sell to Hold today. Zacks Investment Research currently has a rating of Hold on the stock. A number of other analysts have commented on the stock in recent days, and Selective Insurance Group Inc. has secured a consensus one-year price target of $41.00, a decrease compared to the opening price of $42.00, a difference of 9.75 percent. Selective Insurance Group Inc. stock has a 52-week high of $42.55. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Selective Insurance Group Inc. (NASDAQ: SIGI) shares last traded at $42.05, an increase of $0.15 or 0.36% from the previous closing price. Opening at $42.00, they ranged from $42.00 and $42.20 throughout the day.
Selective Insurance Group Inc. (NASDAQ: SIGI) now has a market cap of 2.43B.
Selective Insurance Group Inc. (NASDAQ: SIGI) Average Daily Trading Volume
The stock’s average daily volume is 231,512 shares out of a total float 56,642,000 and some 7,710 shares traded hands yesterday, below normal. Investors often use upticks in trading volume to identify heavy volume growth or circulation by institutional investors, so trading volume is likely to increase in the next few days.
However, a single day of heavy buy side trading is not enough to affirm a trend. So market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Selective Insurance Group Inc. (NASDAQ: SIGI) 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 successful trades.
Trades for Selective Insurance Group Inc. (NASDAQ: SIGI) have ranged from $29.27 – 42.55, and the stock now has a 50-day MA of $39.14 and 200-day MA of $38.65. Today’s last price is 1.18%% under the 52 week high of $42.55.
Earnings growth is a crucial factor to consider when investing in stocks and investors identify companies that have increased their earnings at least 25% or more over 3 consecutive years.
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.