Wells Fargo & Co. (NYSE: WFC) 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 Wells Fargo & Co. (NYSE: WFC) were downgraded by analysts at Susquehanna in a note to their investors today. The company currently has a rating of Neutral on the stock. A number of other analysts have spoken on the company recently, and the company has secured a consensus one-year price target of $51.70, lower than the opening price of $53.13, a difference of 9.68 percent. Wells Fargo & Co. stock has a 52-week high of $56.24. Downgrades happen when analysts consider that the future prospects for the security have weakened from the initial recommendation, usually because of a material and fundamental change in the company’s actions, future direction or industry.
Wells Fargo & Co. (NYSE: WFC) shares last traded at $53.42, a spike of $0.50 or 0.94% from the previous closing price. Opening at $53.13, they ranged from $53.06 and $53.47 throughout the day.
Wells Fargo & Co. (NYSE: WFC) now has a market cap of 268.27B.
Wells Fargo & Co. (NYSE: WFC) Average Daily Trading Volume
3,080,769 shares crossed the trading desk yesterday, below the average, out of a total float 4,508,622,000. Momentum traders often use upticks in trading volume to identify large volume growth or circulation by institutional investors, so look for trading volume to pick up in the coming days.
However, just a day of significant buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as a cue 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, so it is good corroboration to see them buying a stock you’re researching.
Wells Fargo & Co. (NYSE: WFC) 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.
Traders can make more effective choices on trades when they track the trading habits of professional investors.
With that in mind, Wells Fargo & Co. (NYSE: WFC) now has a 50-day MA of $47.82 and 200-day MA of $47.87. It has traded in a 52-week range between $43.55 – 56.240 and today’s last price is 5.02%% lower than the 52 week high of $56.24.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have increased their earnings at least 25% or more over 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.