BNC Bancorp (NASDAQ: BNCN) shares rose on Thursday Nov 17 with lower trade volume than normal after more analysts initiated coverage on the stock.
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 Piper Jaffray Cos. initiated coverage on BNC Bancorp (NASDAQ: BNCN) stock, starting the company at Overweight. Piper Jaffray Cos. currently has a rating of Overweight on the stock. The one-year price target of $27.92 is a decrease compared to the opening price of $29.70, that has caused a number of other analysts to report on the company in recent days. Looking back over the last year, BNC Bancorp stock has a high of $30.00. Changes in price targets are not uncommon as analysts and brokerage firms will issue periodic updates after initiating coverage,.
BNC Bancorp (NASDAQ: BNCN) shares last traded at $29.60, which is a spike of $0.15 or 0.51% from the previous closing price. Opening at $29.70, they fluctuated from $29.55 and $30.00 throughout the day.
BNC Bancorp (NASDAQ: BNCN) now has a market cap of 1,543.61B.
BNC Bancorp (NASDAQ: BNCN) Average Daily Trading Volume
36,667 shares traded hands yesterday, lower than normal, out of a total float 41,689,000. Investors often use upticks in trading volume to determine large volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.
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 period of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
BNC Bancorp (NASDAQ: BNCN) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, BNC Bancorp (NASDAQ: BNCN) now has a 50-day MA of $24.95 and 200-day MA of $23.95. It has traded in a 52-week range between $19.45 – 30.00 and today’s last price is 1.33%% lower than the 52 week high of $30.00.
Earnings growth is an important factor to consider when buying stocks and investors seek companies that have increased their earnings at least 25% or more over a 3 year period.
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