Cullen/Frost Bankers Inc. (NYSE: CFR) shares rose in value Monday Dec 19 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Analysts at SunTrust Banks Inc. upgraded shares of Cullen/Frost Bankers Inc. (NYSE: CFR) from Hold to Buy today. SunTrust Banks Inc. currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have issued reports on the company recently, and the company has secured a consensus one-year price target of $81.88, less than the opening price of $84.75, a difference of 9.67 percent. Cullen/Frost Bankers Inc. stock has a 52-week high of $88.98. Usually, after analysts give an upgrade report on a stock, they will subsequently issue periodic revisions, usually followed by a price target change.
Shares of Cullen/Frost Bankers Inc. (NYSE: CFR) opened at $84.75 on Tuesday and has traded in a range between, $84.62 and $85.77, and last traded at $84.64, which is an increase of $0.07 or 0.08% over the previous closing price.
Cullen/Frost Bankers Inc. (NYSE: CFR) currently has a market cap of 5.33B.
Cullen/Frost Bankers Inc. (NYSE: CFR) Average Daily Trading Volume
74,424 shares crossed the trading desk yesterday, below the average, out of a total float 54,947,000. Swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
As with all potential breakouts, investors watch for volume to be at least 40%-50% greater 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.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are researching.
Cullen/Frost Bankers Inc. (NYSE: CFR) 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 how they influence moving averages, traders can make the best trades.
With that in mind, Cullen/Frost Bankers Inc. (NYSE: CFR) now has a 50-day MA of $81.94 and 200-day MA of $72.14. It has traded in a 52-week range between $42.41 – 88.980 and today’s last price is 4.88%% lower than the 52 week high of $88.98.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings by at least 25% 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.