The Travelers Cos. (NYSE: TRV) shares rose in value Thursday Dec 1 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, U.S. stocks opened with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Citigroup Inc. upgraded shares of The Travelers Cos. (NYSE: TRV) from Neutral to Buy today. The company currently has a rating of Buy on the stock. The one-year price target of $114.56 is above the opening price of $113.88, causing a number of other analysts to report on the company recently. Looking back over the last 52 weeks, The Travelers Cos. stock has a high of $119.32. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of The Travelers Cos. (NYSE: TRV) opened at $113.88 on Tuesday trading between $113.85 and $114.78, and last traded at $114.47, which represents a spike of $1.12 or 0.99% compared to the previous closing price.
The Travelers Cos. (NYSE: TRV) currently has a market cap of 32.52B.
The Travelers Cos. (NYSE: TRV) Average Daily Trading Volume
The stock’s average daily volume is 1,779,400 shares out of a total float 283,246,000 and some 189,875 shares traded hands yesterday, lower than the norm. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to determine large volume accumulation or circulation by institutional investors.
While an increase in trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive indicator 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.
Professional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are researching.
The Travelers Cos. (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 following the activity of these professional investors—and the moving averages they influence— traders are able to make make smarter trades.
With that in mind, The Travelers Cos. (NYSE: TRV) now has a 50-day MA of $110.74 and 200-day MA of $114.37. It has traded in a 52-week range between $101.23 – 119.32 and today’s last price is 4.06%% lower than the 52 week high of $119.32.
Earnings growth is a crucial factor to look at when buying stocks and investors identify companies that have been successful at growing their earnings by at least 25% 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.