Zions Bancorp (NASDAQ: ZION) 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 Zions Bancorp (NASDAQ: ZION) were downgraded by analysts at Susquehanna in a note to their investors today. Susquehanna currently has a rating of Neutral on the stock. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and the company has earned a consensus one-year price target of $37.40, less than the opening price of $39.82, a difference of 9.35 percent. Zions Bancorp stock has a 52-week high of $40.07. Considerable and fundamental changes in the company’s actions, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the initial recommendation.
Shares of Zions Bancorp (NASDAQ: ZION) opened at $39.82 on Tuesday trading between $39.78 and $40.07, and last traded at $40.00, a spike of $0.21 or 0.53% compared to the previous closing price.
Zions Bancorp (NASDAQ: ZION) currently has a market cap of 8.15B.
Zions Bancorp (NASDAQ: ZION) Average Daily Trading Volume
The stock’s average daily volume is 3,296,560 shares out of a total float 200,495,000 and some 372,873 shares crossed the trading desk yesterday, lower than the norm. Trading volume is likely to increase in the next few days as momentum traders often use swings in trading volume to identify substantial volume growth or circulation by institutional investors.
While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Zions Bancorp (NASDAQ: ZION) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Zions Bancorp (NASDAQ: ZION) have ranged from $19.65 – 40.07, and the stock now has a 50-day MA of $34.02 and 200-day MA of $29.63. Today’s last price is 0.17%% under the 52 week high of $40.07.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings at least 25% or more over 3 consecutive years.
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