American Equity Investment Life Holding Company (NYSE: AEL) shares fell in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at RBC Capital Markets reiterated a Buy rating on shares of American Equity Investment Life Holding Company (NYSE: AEL) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. RBC Capital Markets currently has a rating of Buy on the stock. A number of other analysts have commented on the company recently, and American Equity Investment Life Holding Company has earned a consensus one-year price target of $24.13, higher than the opening price of $22.96, a difference of 10.69 percent. American Equity Investment Life Holding Company stock has a 52-week high of $23.45. Usually, after analysts publish a “reiterated rating” report on a stock, they will subsequently issue other revisions, often followed by a price target change.
Shares of American Equity Investment Life Holding Company (NYSE: AEL) opened at $22.96 yesterday and traded in a range between, $22.35 and $22.96, and last traded at $22.57, which represents a decrease of $0.43 from the previous closing price.
American Equity Investment Life Holding Company (NYSE: AEL) currently has a market cap of 1.95B.
American Equity Investment Life Holding Company (NYSE: AEL) Average Daily Trading Volume
58,818 shares crossed the trading desk yesterday, 24 percent lower than the norm, out of a total float 83,189,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
American Equity Investment Life Holding Company (NYSE: AEL) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for American Equity Investment Life Holding Company (NYSE: AEL) have ranged from $12.65 – 23.45, and the stock now has a 50-day MA of $22.05 and 200-day MA of $18.16. Today’s last price is 3.75%% lower than the 52 week high of $23.45.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.
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