Alcoa Corp. (NYSE: AA) shares rose in value on Thursday February 2 on lighter 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 DJIA, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.
Analysts at J P Morgan Chase & Co upgraded shares of Alcoa Corp. (NYSE: AA) from Neutral to Overweight today. With a rating of Overweight on the shares, the company has a 52-week high of $38.94. As a means of comparison, a number of other analysts have spoken on the company in recent days, and the company has earned a consensus one-year price target of $35.06, a decrease compared to the opening price of $36.70, a difference of 9.48 percent. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Alcoa Corp. (NYSE: AA) shares last traded at $36.97, which represents a jump of $0.71 from the previous closing price. Opening at $36.70, they ranged from $36.63 and $37.07 throughout the day.
Alcoa Corp. (NYSE: AA) currently has a market cap of 6.76B.
Alcoa Corp. (NYSE: AA) Average Daily Trading Volume
530,447 shares crossed the trading desk yesterday, 71 percent below normal, out of a total float 146,463,000. lower than normal. Look for trading volume to pick up in the coming days as investors 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.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them buying 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Alcoa Corp. (NYSE: AA) now has a 50-day MA of $32.27 and 200-day MA of $29.58. It has traded in a 52-week range between $20.00 – 38.94 and today’s last price is 5.06%% lower than the 52 week high of $38.94.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings by at least 25% over a 3 year period.
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