U.S. Bancorp (NYSE: USB) 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 U.S. Bancorp (NYSE: USB) were downgraded by analysts at Susquehanna in a note to their investors today. With a rating of Neutral on the stock, the company has a 52-week high of $50.00. The one-year price target of $49.14 is a decrease compared to the opening price of $49.81, that has caused a fair amount of other analysts to comment on the company in recent days. Considerable and fundamental digressions in the company’s actions, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the original recommendation.
Shares of U.S. Bancorp (NYSE: USB) opened at $49.81 on Tuesday and has traded in a range between, $49.63 and $50.00, and last traded at $49.95, a spike of $0.33 or 0.67% over the previous closing price.
U.S. Bancorp (NYSE: USB) currently has a market cap of 84.90B.
U.S. Bancorp (NYSE: USB) Average Daily Trading Volume
The stock’s average daily volume is 7,604,290 shares out of a total float 1,611,225,000 and some 1,114,880 shares traded hands yesterday, lower than normal. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to identify large volume growth or circulation by institutional investors.
However, just a day of heavy buy side trading is not enough to affirm a trend. So market traders will continue to look 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.
Institutional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
U.S. Bancorp (NYSE: USB) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more useful choices on trades.
With that in mind, U.S. Bancorp (NYSE: USB) now has a 50-day MA of $45.64 and 200-day MA of $43.10. It has traded in a 52-week range between $37.07 – 50.00 and today’s last price is 0.10%% lower than the 52 week high of $50.00.
Earnings growth is a critical factor to consider when investing in stocks and investors look for companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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