As of Sept. 6, 2024, four stocks in the financials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here’s the latest list of major overbought players in this sector.
Virtu Financial Inc (NASDAQ:VIRT)
- On July 18, Virtu Financial reported better-than-expected second-quarter financial results. Virtu’s board of directors declared a quarterly cash dividend of 24 cents per share. This dividend is payable on Sept. 15 to shareholders of record as of Sept. 1. The company’s stock gained around 14% over the past month and has a 52-week high of $31.75.
- RSI Value: 83.52
- VIRT Price Action: Shares of Virtu Financial gained 0.8% to close at $31.44 on Thursday.
KKR Real Estate Finance Trust Inc (NYSE:KREF)
- On July 22, KKR Real Estate Finance posted upbeat quarterly results. The company’s stock gained around 15% over the past month and has a 52-week high of $14.12.
- RSI Value: 70.54
- KREF Price Action: Shares of KKR Real Estate Finance Trust surged 5.7% to close at $12.24 on Thursday.
Heritage Insurance Holdings Inc (NYSE:HRTG)
- On Aug. 6, Heritage Insurance posted upbeat quarterly earnings. “First, on behalf of the entire Heritage family, we wish a swift and complete recovery to all of those impacted by Hurricane Debby. Our team has been responding to policyholder needs and remains ready to provide outstanding claim service. With regard to the second quarter, our strong results demonstrate the continued execution of our underwriting and rate adequacy initiatives over the last three years,” remarked Ernie Garateix, CEO at Heritage. The company’s stock gained around 124% over the past month and has a 52-week high of $16.90.
- RSI Value: 75.73
- HRTG Price Action: Shares of Heritage Insurance fell 2.3% to close at $16.27 on Thursday.
First Northwest BanCorp (NASDAQ:FNWB)
- On July 25, First Northwest Bancorp posted better-than-expected quarterly sales. “In spite of challenging times for the entire industry as a result of the rate environment, First Northwest executed on a balance sheet restructure strategy. The restructure included a sale-leaseback transaction for six of our branches, a restructure of our bank-owned life insurance policies, two securities loss sale transactions, two balance sheet hedges against fixed rate loans and municipal bonds and the sale of our Visa B shares,” commented Matthew P. Deines, President and CEO. The company’s stock jumped around 17% over the past month and has a 52-week high is $16.12.
- RSI Value: 72.83
- FNWB Price Action: Shares of First Northwest BanCorp fell 1% to close at $11.57 on Thursday.
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