AK Steel Holding Corp. (NYSE: AKS) shares rose in value in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Deutsche Bank AG upgraded shares of AK Steel Holding Corp. (NYSE: AKS) from Sell to Hold today. With a rating of Hold on the stock, the company has a 52-week high of $7.09. The one-year price target of $5.40 is higher than the opening price of $4.91, that has caused a number of other analysts to comment on the stock in recent days. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.
The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.
The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.
The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298
AK Steel Holding Corp. (NYSE: AKS) shares last traded at $4.85, which represents a spike of $0.02 or 0.00 over the previous closing price. Opening at $4.91, they fluctuated from $4.79 and $4.93 throughout the day.
AK Steel Holding Corp. (NYSE: AKS) now has a market cap of 1.16B.
AK Steel Holding Corp.Trading Volume
2,537,197 shares traded hands yesterday, lower than normal, out of a total float 235,273,000. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify large volume accumulation or circulation by institutional investors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
AK Steel Holding Corp. 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.
Traders are able to make make smarter trades when they follow the activity of professional investors.
Trades for AK Steel Holding Corp. (NYSE: AKS) have ranged from $1.64 – 7.09, and the stock now has a 50-day MA of $4.64 and 200-day MA of $4.68. Today’s last price is 0.32% under the 52 week high of $7.09.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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