Regions Financial Corp. (RF) Shares Slip, Investors Watching Closely, Here is Why

Regions Financial Corp. (NYSE: RF) shares rose on Thursday Dec 1 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, U.S. stocks opened with slight gains on Thursday.

The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.

The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Shares of Regions Financial Corp. (NYSE: RF) were downgraded by analysts at Susquehanna in a note to their investors today. The company currently has a rating of Neutral on the shares. The one-year price target of $12.70 is a decrease compared to the opening price of $13.61, that has caused a fair amount of other analysts to report on the company recently. Looking back over the last year, Regions Financial Corp. stock has a high of $13.67. Downgrades happen when analysts believe that the future prospects for the security have dropped from the initial recommendation, often caused by a considerable and fundamental digression in the company’s actions, future outlook or industry.

Regions Financial Corp. (NYSE: RF) shares last traded at $13.61, which represents a jump of $0.07 or 0.52% compared to the previous closing price. Opening at $13.61, they fluctuated from $13.55 and $13.67 throughout the day.

Regions Financial Corp. (NYSE: RF) currently has a market cap of 16.75B.

Regions Financial Corp. (NYSE: RF) Average Daily Trading Volume

The stock’s average daily volume is 21,278,900 shares out of a total float 1,227,158,000 and some 2,831,931 shares traded hands yesterday, below normal. Investors often use upticks in trading volume to determine substantial volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.

While an increase in trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these have teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Regions Financial Corp. (NYSE: RF) 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,it allows for traders to make more effective decisions on trades.

Trades for Regions Financial Corp. (NYSE: RF) have ranged from $7.00 – 13.67, and the stock now has a 50-day MA of $11.42 and 200-day MA of $9.90. Today’s last price is 0.44%% below the 52 week high of $13.67.

Earnings growth is a critical factor to consider when investing in stocks and investors identify companies that have raised their earnings at least 25% or more over a 3 year period.

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