Koppers Holdings Inc. (NYSE: KOP) shares rose in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
Analysts at Zacks Investment Research upgraded shares of Koppers Holdings Inc. (NYSE: KOP) from Hold to Buy today. With a rating of Buy on the shares, Koppers Holdings Inc. has a 52-week high of $42.70. A number of other analysts have issued reports on the stock in recent days, and the company has earned a consensus one-year price target of $43.00, higher than the opening price of $39.70, a difference of 10.76 percent. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday Koppers Holdings Inc. (NYSE: KOP) shares last traded at $39.95, which is a spike of $0.50 compared to the previous closing price. Opening at $39.70, they fluctuated from $39.65 and $40.00 throughout the day.
Koppers Holdings Inc. (NYSE: KOP) now has a market cap of 825.45M.
Koppers Holdings Inc. (NYSE: KOP) Average Daily Trading Volume
The stock’s average daily volume is 121,981 shares out of a total float 20,050,000 and some 3,552 shares crossed the trading desk yesterday, 108 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases 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.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
Koppers Holdings Inc. (NYSE: KOP) 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, Koppers Holdings Inc. (NYSE: KOP) now has a 50-day MA of $40.63 and 200-day MA of $34.16. It has traded in a 52-week range between $13.58 – 42.70 and today’s last price is 6.44%% lower than the 52 week high of $42.70.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.
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