Alcoa Corp. (NYSE: AA) shares rose in value on Wednesday January 25 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
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.
Analysts at Deutsche Bank AG upgraded shares of Alcoa Corp. (NYSE: AA) from Sell to Hold today. With a rating of Hold on the shares, Alcoa Corp. has a 52-week high of $38.94. A number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $32.44, a decrease compared to the opening price of $38.58, a difference of 8.39 percent. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of Alcoa Corp. (NYSE: AA) opened at $38.58 yesterday and traded in a range between, $37.85 and $38.94, and last traded at $38.65, which is an increase of $1.15 from the previous closing price.
Alcoa Corp. (NYSE: AA) now has a market cap of 7.07B.
Alcoa Corp. (NYSE: AA) Average Daily Trading Volume
The stock’s average daily volume is 4,799,140 shares out of a total float 146,414,000 and some 3,714,461 shares crossed the trading desk yesterday, 107 percent below normal. 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.
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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
Alcoa Corp. (NYSE: AA) 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 Alcoa Corp. (NYSE: AA) have ranged from $20.00 – 38.94, and the stock now has a 50-day MA of $31.31 and 200-day MA of $28.96. Today’s last price is 0.74%% lower than the 52 week high of $38.94.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more over a 3 year period.
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