Alcoa Inc. (AA) stock moves up, “Overweight” rating reaffirmed by Morgan Stanley Analysts

Alcoa Inc. (NYSE: AA) shares rose yesterday on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.

Morgan Stanley analysts reiterated its Overweight rating on Alcoa Inc. (NYSE: AA) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Overweight on the shares, the company has a 52-week high of $11.50. The one-year price target of $11.31 is higher than the opening price of $10.25, resulting a fair amount of other analysts to comment on the company recently. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.62% finished up 112.58 points, or 0.6%, at 18,281.03 yesterday.

The Nasdaq Composite Index COMP, +0.50% rose 26.36 points, or 0.5%, to end at 5,316.02, and is up 0.1% for the week to date.

The S&P 500 index SPX, +0.43% added 9.24 points, or 0.4%, to close at 2,159.73.

Alcoa Inc. (NYSE: AA) shares last traded at $10.40, which represents a jump of $0.20 or 0.02 over the previous closing price. Opening at $10.25, they ranged from $10.17 and $10.41 throughout the day.

Alcoa Inc. (NYSE: AA) currently has a market cap of 13.68B.

Alcoa Inc.Trading Volume

The stock’s average daily volume is 16,979,800 shares out of a total float 1,234,873,000 and some 29,737,799 shares traded hands yesterday, above normal. Substantial expansions in trading volume and price appreciation together could signal considerable volume aggregation by institutional investors.

However, one day of significant 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.

Institutional investors such as these retain substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Alcoa Inc. 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 following the activity of these professional investors—and the moving averages they influence— traders are able to make make educated trades.

With that in mind, Alcoa Inc. (NYSE: AA) now has a 50-day MA of $9.96 and 200-day MA of $9.93. It has traded in a 52-week range between $6.14 – 11.50 and today’s last price is 0.10% lower than the 52 week high of $11.50.

Earnings growth is ann important factor to look at when buying stocks and investors look for companies that have been successful at growing their earnings by at least 25% for a 3 year period.

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