AK Steel Holding Corporation (NYSE: AKS) shares slid back in value Wednesday Jan 4 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.
The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.
Analysts at Zacks Investment Research upgraded shares of AK Steel Holding Corporation (NYSE: AKS) from Hold to Buy today. The company currently has a rating of Buy on the stock. The one-year price target of $9.43 is a decrease compared to the opening price of $10.51, that has caused a fair amount of other analysts to comment on the stock recently. Looking back over the last year, AK Steel Holding Corporation stock has a high of $11.39. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.
AK Steel Holding Corporation (NYSE: AKS) shares last traded at $10.42, a decrease of $0.12 per share or -0.01 from the previous closing price. Opening at $10.51, they varied from $10.38 and $10.73 throughout the day.
AK Steel Holding Corporation (NYSE: AKS) now has a market cap of 2.48B.
AK Steel Holding Corporation (NYSE: AKS) Average Daily Trading Volume
2,410,098 shares crossed the trading desk yesterday, lower than normal, out of a total float 235,996,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.
AK Steel Holding Corporation (NYSE: AKS) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, AK Steel Holding Corporation (NYSE: AKS) now has a 50-day MA of $9.81 and 200-day MA of $6.25. It has traded in a 52-week range between $1.64 – 11.3900 and today’s last price is 0.08% lower than the 52 week high of $11.39.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more for the past 3 years.
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