Deutsche Bank AG (DB) shares fall following downgrade at Citigroup Inc.

Deutsche Bank AG (NYSE: DB) shares fell on 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 downgraded 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.

Shares of Deutsche Bank AG (NYSE: DB) were downgraded by analysts at Citigroup Inc. in a note to their investors today. With a rating of Sell on the shares, the company has a 52-week high of $24.92. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $10.79, lower than the opening price of $18.57, a difference of 5.81 percent. Material and major changes in the company’s operations, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have dropped from the initial recommendation.

Deutsche Bank AG (NYSE: DB) shares last traded at $18.57, which represents a decrease of $0.44 per share or -2.31% from the previous closing price. Opening at $18.57, they varied from $18.50 and $18.79 throughout the day.

Deutsche Bank AG (NYSE: DB) currently has a market cap of 25.60B.

Deutsche Bank AG (NYSE: DB) Average Daily Trading Volume

The stock’s average daily volume is 11,073,600 shares out of a total float 1,271,336,000 and some 4,790,825 shares traded hands yesterday, below normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify substantial volume accumulation or distribution by institutional investors.

While increased 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 sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

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’re considering.

Deutsche Bank AG (NYSE: DB) 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.

Traders can make more impactful judgments on trades when they follow the trading habits of professional investors.

Trades for Deutsche Bank AG (NYSE: DB) have ranged from $11.19 – 24.92, and the stock now has a 50-day MA of $16.18 and 200-day MA of $14.72. Today’s last price is 25.48%% under the 52 week high of $24.92.

Earnings growth is an important factor to look at when buying stocks and investors identify companies that have increased their earnings at least 25% or more for 3 consecutive years.

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