American Axle & Manufacturing Holdings Inc. (NYSE: AXL) shares rose in value Thursday Dec 1 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks opened with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Deutsche Bank AG upgraded shares of American Axle & Manufacturing Holdings Inc. (NYSE: AXL) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $22.98. The one-year price target of $15.90 is a decrease compared to the opening price of $16.39, resulting a fair amount of other analysts to report on the stock recently. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
American Axle & Manufacturing Holdings Inc. (NYSE: AXL) shares last traded at $16.50, a jump of $0.84 or 5.36% compared to the previous closing price. Opening at $16.39, they ranged from $16.24 and $16.73 throughout the day.
American Axle & Manufacturing Holdings Inc. (NYSE: AXL) now has a market cap of 1.26B.
American Axle & Manufacturing Holdings Inc. (NYSE: AXL) Average Daily Trading Volume
The stock’s average daily volume is 1,418,660 shares out of a total float 73,092,000 and some 534,582 shares crossed the trading desk yesterday, below the norm. Investors often use upticks in trading volume to determine substantial volume aggregation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.
American Axle & Manufacturing Holdings Inc. (NYSE: AXL) 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, American Axle & Manufacturing Holdings Inc. (NYSE: AXL) now has a 50-day MA of $16.24 and 200-day MA of $16.43. It has traded in a 52-week range between $11.44 – 22.98 and today’s last price is 28.20%% lower than the 52 week high of $22.98.
Earnings growth is an important factor to consider when buying stocks and investors seek companies that have raised their earnings at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and 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.