AK Steel Holding Corporation (NYSE: AKS) shares fell in early trading yesterday lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Shares of AK Steel Holding Corporation (NYSE: AKS) were downgraded by analysts at Credit Suisse Group in a note to their investors today. With a rating of Neutral on the shares, the company has a 52-week high of $11.39. A number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $9.79, a decrease compared to the opening price of $10.77. Downgrades are more common when analysts consider that the future prospects for the security have diminished from the original recommendation, often due to an important and fundamental digression in the company’s actions, future direction or industry.
Shares of AK Steel Holding Corporation (NYSE: AKS) opened at $10.77 yesterday and traded in a range between, $10.21 and $10.79, and last traded at $10.39, which represents a drop of $0.64 from the previous closing price.
AK Steel Holding Corporation (NYSE: AKS) currently has a market cap of 2.47B.
AK Steel Holding Corporation (NYSE: AKS) Average Daily Trading Volume
The stock’s average daily volume is 21,533,700 shares out of a total float 235,941,000 and some 8,772,311 shares crossed the trading desk yesterday, 74 percent below normal. 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.
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.
Professional investors such as these retain teams of analysts that research thousands of stocks, so it is good confirmation 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 $10.30 and 200-day MA of $6.50. It has traded in a 52-week range between $1.64 – 11.390 and today’s last price is 8.82%% lower than the 52 week high of $11.39.
Earnings growth is a critical factor to consider when buying stocks and investors look for companies that have grown their earnings at least 25% or more over the past 3 years.
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