American Eagle Outfitters, Inc. (NYSE: AEO) shares rose in value on Wednesday January 25 on slower 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 Telsey Advisory Group upgraded shares of American Eagle Outfitters, Inc. (NYSE: AEO) from Market Perform to Outperform today. With a rating of Outperform on the shares, American Eagle Outfitters, Inc. has a 52-week high of $19.55. As a means of comparison, a number of other analysts have spoken on the company in recent days, and American Eagle Outfitters, Inc. has earned a consensus one-year price target of $18.40, above the opening price of $15.22, a difference of 12.09 percent. Stock prices often shift to the upside on recommendations and new price targets of professional analysts.
Yesterday American Eagle Outfitters, Inc. (NYSE: AEO) shares last traded at $15.22, which is an increase of $0.24 compared to the previous closing price. Opening at $15.22, they varied from $15.16 and $15.33 throughout the day.
American Eagle Outfitters, Inc. (NYSE: AEO) currently has a market cap of 2.77B.
American Eagle Outfitters, Inc. (NYSE: AEO) Average Daily Trading Volume
The stock’s average daily volume is 5,686,910 shares out of a total float 164,886,000 and some 590,822 shares traded hands yesterday, 53 percent lower than the norm. 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.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
American Eagle Outfitters, Inc. (NYSE: AEO) 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.
With that in mind, American Eagle Outfitters, Inc. (NYSE: AEO) now has a 50-day MA of $15.80 and 200-day MA of $17.32. It has traded in a 52-week range between $12.78 – 19.55 and today’s last price is 22.15%% lower than the 52 week high of $19.55.
Earnings growth is a critical factor to research when investing in stocks and investors identify companies that have grown their earnings by at least 25% for a 3 year period.
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.