Zacks Investment Research (Selective Insurance Group Inc.: NASDAQ) shares fell back in value Wednesday Dec 28 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks were little changed on Wednesday, as investors found few reasons to keep pushing shares higher towards the 20,000 mark.
The Dow Jones Industrial Average DJIA, -0.11% rose 3.1 points to 19,949, essentially unchanged on the day. The S&P 500 SPX, -0.39% lost 3 points, or 0.1%, to 2,266 while the Nasdaq Composite Index COMP, -0.59% slipped 6.4 points, or 0.1%, to 5,482.
Analysts at Zacks Investment Research upgraded shares of Zacks Investment Research (Selective Insurance Group Inc.: NASDAQ) from Sell to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $41.67 is a decrease compared to the opening price of $43.50, causing a number of other analysts to report on the company recently. Looking back over the last year, Selective Insurance Group Inc. stock has a high of $44.00. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Zacks Investment Research (Selective Insurance Group Inc.: NASDAQ) opened at $43.50 on Tuesday trading between $43.30 and $43.50, and last traded at $43.30, which represents a dip of $0.10 per share or -0.23% compared to the previous closing price.
Zacks Investment Research (Selective Insurance Group Inc.: NASDAQ) currently has a market cap of 2.51B.
Zacks Investment Research (Selective Insurance Group Inc.: NASDAQ) Average Daily Trading Volume
2,668 shares crossed the trading desk yesterday, lower than normal, out of a total float 56,646,000. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to pinpoint large volume accumulation or distribution by institutional investors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% greater than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Zacks Investment Research (Selective Insurance Group Inc.: NASDAQ) 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 the moving averages they affect— traders can make educated trades.
With that in mind, Zacks Investment Research (Selective Insurance Group Inc.: NASDAQ) now has a 50-day MA of $41.40 and 200-day MA of $39.46. It has traded in a 52-week range between $29.27 – 44.00 and today’s last price is 1.59%% lower than the 52 week high of $44.00.
Earnings growth is a crucial factor to research when buying stocks and investors seek companies that have raised their earnings at least 25% or more for the past 3 years.
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