Reliance Steel & Aluminum Co. (NYSE: RS) shares rose 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%.
KeyCorp analysts reiterated its Buy rating on Reliance Steel & Aluminum Co. (NYSE: RS) in a note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and the company has earned a consensus one-year price target of $80.33, a decrease compared to the opening price of $81.63. Reliance Steel & Aluminum Co. stock has a 52-week high of $87.58. Typically, after analysts give a “reiterated rating” report on a stock, they will subsequently issue periodic updates, such as a price target change.
Yesterday Reliance Steel & Aluminum Co. (NYSE: RS) shares last traded at $81.44, an increase of $1.11 compared to the previous closing price. Opening at $81.63, they ranged from $80.86 and $81.78 throughout the day.
Reliance Steel & Aluminum Co. (NYSE: RS) currently has a market cap of 5.91B.
Reliance Steel & Aluminum Co. (NYSE: RS) Average Daily Trading Volume
The stock’s average daily volume is 616,410 shares out of a total float 69,977,000 and some 60,744 shares crossed the trading desk yesterday, 105 percent lower than normal. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Reliance Steel & Aluminum Co. (NYSE: RS) 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 spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
Trades for Reliance Steel & Aluminum Co. (NYSE: RS) have ranged from $50.08 – 87.58, and the stock now has a 50-day MA of $82.23 and 200-day MA of $75.73. Today’s last price is 7.01%% lower than the 52 week high of $87.58.
Earnings growth is a crucial factor to research when investing in stocks and investors watch for companies that have increased their earnings at least 25% or more over 3 consecutive years.
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