The Travelers Companies, Inc. (NYSE: TRV) shares rose in value on Tuesday January 17 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade, the Dow Jones Industrial Average was 47 points lower, or 0.24% to 19838, the S&P 500 fell 7 points, or 0.29% to 2267, while the Nasdaq was down 19 points, or 0.35% to 5554.
Analysts at Macquarie upgraded shares of The Travelers Companies, Inc. (NYSE: TRV) from Underperform to Outperform today. Macquarie currently has a rating of Outperform on the stock. The one-year price target of $118.94 is above the opening price of $117.01, that has caused a fair amount of other analysts to comment on the stock recently. Looking back over the last year, The Travelers Companies, Inc. stock has a high of $123.09. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday The Travelers Companies, Inc. (NYSE: TRV) shares last traded at $117.62, which represents a spike of $0.57 over the previous closing price. Opening at $117.01, they varied from $116.62 and $117.70 throughout the day.
The Travelers Companies, Inc. (NYSE: TRV) currently has a market cap of 33.41B.
The Travelers Companies, Inc. (NYSE: TRV) Average Daily Trading Volume
The stock’s average daily volume is 1,947,100 shares out of a total float 283,220,000 and some 198,715 shares crossed the trading desk yesterday, 70 percent lower than normal. 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.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by 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 validation to see them taking a postion in a stock you are researching.
The Travelers Companies, Inc. (NYSE: TRV) 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, The Travelers Companies, Inc. (NYSE: TRV) now has a 50-day MA of $118.88 and 200-day MA of $115.82. It has traded in a 52-week range between $101.23 – 123.09 and today’s last price is 4.44%% lower than the 52 week high of $123.09.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings by at least 25% for the past 3 years.
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