KeyCorp (KEY) Shares Slip, Investors Watching Closely, Here is Why

KeyCorp (NYSE: KEY) shares rose on Monday Dec 5 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 Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.

The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.

Analysts at CLSA downgraded shares of KeyCorp (NYSE: KEY) from Outperform to Underperform in a research note to investors today. With a rating of Underperform on the stock, KeyCorp has a 52-week high of $18.01. A number of other analysts have commented on the company recently, and KeyCorp has secured a consensus one-year price target of $17.33, less than the opening price of $17.89. Downgrades occur when analysts consider that the future prospects for the security have dropped from the initial recommendation, often caused by a material and crucial digression in the company’s procedures, future outlook or industry.

KeyCorp (NYSE: KEY) shares last traded at $17.94, which represents an increase of $0.04 or 0.20% from the previous closing price. Opening at $17.89, they ranged from $17.82 and $18.01 throughout the day.

KeyCorp (NYSE: KEY) currently has a market cap of 19.38B.

KeyCorp (NYSE: KEY) Average Daily Trading Volume

The stock’s average daily volume is 16,744,000 shares out of a total float 1,077,469,000 and some 3,700,151 shares traded hands yesterday, below normal. Investors often use increases in trading volume to pinpoint heavy volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.

However, a single day of significant buy side trading is not enough to determine a trend. So market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.

Institutional sponsorship just 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. Thus, watching their interests is a good way to ensure you are buying the right stocks.

KeyCorp (NYSE: KEY) 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 are able to make make more effective decisions on trades when they follow the trading habits of professional investors.

With that in mind, KeyCorp (NYSE: KEY) now has a 50-day MA of $15.24 and 200-day MA of $12.85. It has traded in a 52-week range between $9.88 – 18.010 and today’s last price is 0.42%% lower than the 52 week high of $18.01.

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 raised their earnings at least 25% or more for 3 consecutive years.

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