Fidelity and Guaranty Life (FGL) Stock Up After Upgrade at Sandler O’Neill

Fidelity and Guaranty Life (NYSE: FGL) shares rose in value on Tuesday January 17 on lighter 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.

Stock Picks and Investing in the Stock Market

Analysts at Sandler O’Neill upgraded shares of Fidelity and Guaranty Life (NYSE: FGL) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $26.55. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and Fidelity and Guaranty Life has earned a consensus one-year price target of $26.40, higher than the opening price of $24.70. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.

Yesterday Fidelity and Guaranty Life (NYSE: FGL) shares last traded at $24.30, an increase of $0.30 from the previous closing price. Opening at $24.70, they varied from $24.25 and $24.75 throughout the day.

Fidelity and Guaranty Life (NYSE: FGL) now has a market cap of 1.43B.

Fidelity and Guaranty Life (NYSE: FGL) Average Daily Trading Volume

26,648 shares crossed the trading desk yesterday, 80 percent lower than the norm, out of a total float 11,480,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

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 substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.

Fidelity and Guaranty Life (NYSE: FGL) 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, Fidelity and Guaranty Life (NYSE: FGL) now has a 50-day MA of $23.80 and 200-day MA of $23.16. It has traded in a 52-week range between $21.10 – 26.55 and today’s last price is 8.47%% lower than the 52 week high of $26.55.

Earnings growth is an important factor to look at when investing in stocks and investors seek companies that have increased their earnings by at least 25% over a 3 year period.

DISCLOSURE: The views and opinions expressed in this article 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.

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