American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) shares rose in value on Tuesday February 14 on slower 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 slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Analysts at Zacks Investment Research upgraded shares of American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) from Hold to Strong-Buy today. Zacks Investment Research currently has a rating of Strong-Buy on the stock. A number of other analysts have issued reports on the company recently, and the company has secured a consensus one-year price target of $19.70, less than the opening price of $20.20. American Axle & Manufacturing Holdings, Inc. stock has a 52-week high of $21.25. Share prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) opened at $20.20 yesterday and traded in a range between, $20.20 and $20.62, and last traded at $20.38, which represents a jump of $0.04 compared to the previous closing price.
American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) currently has a market cap of 1.56B.
American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) Average Daily Trading Volume
119,973 shares traded hands yesterday, 48 percent below the average, out of a total float 75,875,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) now has a 50-day MA of $20.11 and 200-day MA of $17.70. It has traded in a 52-week range between $12.31 – 21.25 and today’s last price is 4.09%% lower than the 52 week high of $21.25.
Earnings growth is a crucial factor to consider when buying stocks and investors watch for companies that have grown their earnings at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article 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.