Texas Capital Bancshares Inc. (NASDAQ: TCBI) shares rose on Wednesday Nov 30 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
Meanwhile, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.
The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.
The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.
Texas Capital Bancshares Inc. (NASDAQ: TCBI) had its price target boosted by equities researchers at Wedbush from $67.00 to $70.00. With a rating of Neutral on the shares, Texas Capital Bancshares Inc. has a 52-week high of $75.85. A number of other analysts have commented on the stock in recent days, and Texas Capital Bancshares Inc. has earned a consensus one-year price target of $64.41, lower than the opening price of $72.00.
Texas Capital Bancshares Inc. (NASDAQ: TCBI) shares last traded at $72.35, which is a jump of $1.05 or 1.47% from the previous closing price. Opening at $72.00, they ranged from $71.11 and $72.60 throughout the day.
Texas Capital Bancshares Inc. (NASDAQ: TCBI) currently has a market cap of 3.33B.
Texas Capital Bancshares Inc. (NASDAQ: TCBI) Average Daily Trading Volume
136,676 shares crossed the trading desk yesterday, below normal, out of a total float 45,502,000. Swing traders often use swings in trading volume to pinpoint large volume aggregation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, one 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.
These instituitional investors retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Texas Capital Bancshares Inc. (NASDAQ: TCBI) 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, traders can make educated trades.
Trades for Texas Capital Bancshares Inc. (NASDAQ: TCBI) have ranged from $29.78 – 75.85, and the stock now has a 50-day MA of $62.72 and 200-day MA of $53.08. Today’s last price is 4.61%% under the 52 week high of $75.85.
Earnings growth is a crucial factor to consider when buying stocks and investors identify companies that have increased their earnings at least 25% or more over a 3 year period.
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