KeyCorp (NYSE: KEY) 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.
Analysts at Stephens downgraded shares of KeyCorp (NYSE: KEY) from Overweight to Equal Weight in a research note to investors today. Stephens currently has a rating of Equal Weight on the stock. The one-year price target of $18.06 is $18.06, resulting a fair amount of other analysts to issue statements on the company recently. Looking back over the last 52 weeks, KeyCorp stock has a high of $18.61. Downgrades happen when analysts believe that the future prospects for the security have weakened from the original recommendation, often caused by a material and major digression in the company’s operations, future direction or industry.
KeyCorp (NYSE: KEY) shares last traded at $18.07, which is a decrease of $0.09 per share or -0.50% from the previous closing price. Opening at $18.06, they fluctuated from $18.02 and $18.22 throughout the day.
KeyCorp (NYSE: KEY) currently has a market cap of 19.53B.
KeyCorp (NYSE: KEY) Average Daily Trading Volume
The stock’s average daily volume is 16,662,700 shares out of a total float 1,077,513,000 and some 1,862,313 shares crossed the trading desk yesterday, below the average. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to determine heavy volume accumulation or distribution by institutional investors.
As with all possible breakouts, investors look for volume to be at least 40%-50% above 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.
These professional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
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.
By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for KeyCorp (NYSE: KEY) have ranged from $9.88 – 18.61, and the stock now has a 50-day MA of $16.66 and 200-day MA of $13.25. Today’s last price is 2.90%% below the 52 week high of $18.61.
Earnings growth is a critical factor to look at when investing in stocks and investors watch for companies that have raised their earnings at least 25% or more over a 3 year period.
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