On Friday, the Federal Reserve indicated that Wall Street banks were in sound condition, thereby giving permission to banks to resume stock buybacks starting in the first quarter.
33 largest banks in the nation got a major validation from the Fed’s second round of stress tests, despite the macroeconomic impact of the coronavirus pandemic. The banks that are subject to the stress tests all have at least USD 50 billion in assets. The Fed said that the tests showed that all 33 banks have capital cushion above their minimum requirements to protect against risk. Still, the regulators have maintained restrictions on dividend payouts through March. Nevertheless, buybacks of company stock will be allowed again, with some limits.
According to the Fed’s latest decision, the amount a bank will be allowed to pay shareholders or buy back in its stock will depend on the banks’ earnings over the past year. A bank earning no income during that period would not be able to payout dividends or buy back shares in the first quarter of 2021.
The 10-day moving average for KBE crossed bullishly above the 50-day moving average on April 30, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 24, 2024. You may want to consider a long position or call options on KBE as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for KBE just turned positive on April 23, 2024. Looking at past instances where KBE's MACD turned positive, the stock continued to rise in of 41 cases over the following month. The odds of a continued upward trend are .
KBE moved above its 50-day moving average on May 01, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KBE advanced for three days, in of 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
KBE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 240 cases where KBE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for KBE moved out of overbought territory on April 01, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 69 cases where KBE's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KBE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category Financial