Should Investors Take A Bite Out Of The Travelers Companies, Inc. (TRV)?

The Travelers Companies, Inc. (NYSE:TRV) closed November 22 at $130.01, down -4.2% or $5.7 from its record high price of $135.71. Looking at the other side of the coin, TRV traded as low as $111.83 in the past 52 weeks, and since then the shares have risen 16.26% or $18.18. The recent price momentum makes it one stock to watch in recent days. Its -0.47% depreciation from Tuesday’s close has set alarm bells ringing.

Is The Travelers Companies, Inc. (NYSE:TRV) Performing Well?

The Travelers Companies, Inc. (TRV) shares are down -2.77% for the week and that has got investors and traders sitting up and taking note. TRV is already driving a 15.67% rally over the course of the past year and is now up 6.2% since this point in 2017. Speaking of monthly performance, TRV tapped a -2.39% decline. Also, the equity price jumped 3.54% % in three months, taking the six-month increase to 5.08% as of recent close. With that said, researchers took a deep dive into the hotly debated question: is it too late to buy The Travelers Companies, Inc. (NYSE:TRV).

The Travelers Companies, Inc. (TRV) Soon To Be A $36.69B Company

Analyst research firms are expressing bullish stance on The Travelers Companies, Inc. (NYSE:TRV)’s near-term growth potential. They anticipate the TRV stock will hit $133.13 on a short term (12 month) basis. Their average price target spell out an upbeat performance – a 2% and would give TRV a market capitalization of nearly $36.69B.

The Travelers Companies, Inc. Current Recommendations

Valued currently at $130.01, the vast majority of Wall Street analysts continue to say it’s a hold. Mean recommendation is rated on a 1 to 5 scale. 1 is equivalent to a buy rating, 3 a hold rating, and 5 a sell rating. The Mean Recommendation is the average rating on a stock by the analyst community.

Is TRV Technically Strong Enough?

Right now, TRV’s beta is 1.28. That makes it 0.28 more volatile than the broad market. The Travelers Companies, Inc. (NYSE:TRV) is 4.21% above its 200-day moving average, providing a measure of resistance for long positions. On a similar note, the stock is 1.45% above its 50-day moving average, providing a measure of support for short positions. The average daily volatility for the week was at 1.15%, which was -0.15 lower than that in the past month.

The Travelers Companies, Inc. (TRV) In Neutral Territory

From another technical standpoint, The Travelers Companies, Inc. (NYSE:TRV)’s 14-day Relative Strength Index (RSI) has reached 45.62, putting it inside a neutral zone. If the RSI is traveling up and it is between 40 and 80, it is probably an indication of an uptrend. If it moves beyond 70 but cannot hold this ground and instead falls below 70, it could be an indication that the market is overbought and prone to become bearish, at least in the short term. Conversely, if the RSI is traveling down and it is between 60 and 20, it is probably an indication of a downtrend. If it moves below 30 and fails to remain below, it could be an indication that the market is oversold and poised to become bullish, at least in the short term.

How Active Are The Travelers Companies, Inc. (NYSE:TRV) Shares?

Technical analysts also use volume to predict trends. The current trading volume of 0.78 sits 117.95% lower than the past 3 month’s readings, indicating near-term traders have been less active toward TRV than usual of late. The company trades on average around 170000 shares per market session. Major moves in volume can signal unusual activity, such as insider trading. Unusual volume can be a major signal that investment gurus and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well ahead of a large spike, so it’s always a smart move to monitor unusual volume. In terms of relative volume, these shares are trading at 2.18x their normal volume.

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