Alleghany Corp. (Y) Shares Tick Up after Upgrade at Zacks Investment Research

Alleghany Corp. (NYSE: Y) shares rose in value Thursday Nov 17 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”

The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.

Analysts at Zacks Investment Research upgraded shares of Alleghany Corp. (NYSE: Y) from Hold to Strong-Buy today. With a rating of Strong-Buy on the stock, Alleghany Corp. has a 52-week high of $567.16. A number of other analysts have spoken on the company in recent days, and the company has secured a consensus one-year price target of $1.00, lower than the opening price of $565.46, a difference of 0.02 percent. Share prices sometimes get a spike to the upside when analysts upgrade a stock.

Alleghany Corp. (NYSE: Y) shares last traded at $565.15, a jump of $1.20 or 0.21% from the previous closing price. Opening at $565.46, they ranged from $564.07 and $567.16 throughout the day.

Alleghany Corp. (NYSE: Y) now has a market cap of 8.71B.

Alleghany Corp. (NYSE: Y) Average Daily Trading Volume

2,783 shares traded hands yesterday, lower than normal, out of a total float 14,802,000. Momentum traders often use swings in trading volume to pinpoint substantial volume growth or circulation by institutional investors, so look for trading volume to pick up in the coming days.

However, a single day of high volume buy side trading is not enough to assert a trend. So market traders will continue to look 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 investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Alleghany Corp. (NYSE: Y) 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 marking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective judgments on trades.

With that in mind, Alleghany Corp. (NYSE: Y) now has a 50-day MA of $527.12 and 200-day MA of $531.32. It has traded in a 52-week range between $446.50 – 567.16 and today’s last price is 0.36%% lower than the 52 week high of $567.16.

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 by at least 25% over 3 consecutive years.

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