AK Steel Holding Corporation (NYSE: AKS) shares fell on Wednesday January 25 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, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened
The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.
The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.
All three main indexes set intraday records shortly after the opening bell.
AK Steel Holding Corporation (NYSE: AKS) had its Buy rating reiterated by equities researchers at Jefferies Group LLC in a research note to investors. With a rating of Buy on the shares, AK Steel Holding Corporation has a 52-week high of $11.39. A number of other analysts have issued reports on the company recently, and the company has secured a consensus one-year price target of $10.14, above the opening price of $8.35, a difference of 12.40 percent. Typically, after analysts publish a “reiterated rating” report on a stock, they will later issue recurring revisions, such as a price target change.
Shares of AK Steel Holding Corporation (NYSE: AKS) opened at $8.35 yesterday trading between $8.05 and $8.48, and last traded at $8.18, which is a decrease of $0.50 over the previous closing price.
AK Steel Holding Corporation (NYSE: AKS) now has a market cap of 1.95B.
AK Steel Holding Corporation (NYSE: AKS) Average Daily Trading Volume
The stock’s average daily volume is 24,066,600 shares out of a total float 235,727,000 and some 12,319,911 shares traded hands 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 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are considering.
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.
Trades for AK Steel Holding Corporation (NYSE: AKS) have ranged from $1.85 – 11.39, and the stock now has a 50-day MA of $10.32 and 200-day MA of $6.81. Today’s last price is 28.18%% under 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 seek companies that have raised their earnings by at least 25% for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.