American Eagle Outfitters Inc. (NYSE: AEO) shares rose in value Tuesday Dec 13 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at Zacks Investment Research upgraded shares of American Eagle Outfitters Inc. (NYSE: AEO) from Sell to Hold today. With a rating of Hold on the stock, American Eagle Outfitters Inc. has a 52-week high of $19.55. The one-year price target of $19.15 is above the opening price of $17.50, that has caused a number of other analysts to issue statements on the company recently. Usually, after analysts give an upgrade report on a stock, they will later issue sporadic updates, such as a price target change.
American Eagle Outfitters Inc. (NYSE: AEO) shares last traded at $17.53, which represents a jump of $0.03 or 0.17% compared to the previous closing price. Opening at $17.50, they fluctuated from $17.38 and $17.63 throughout the day.
American Eagle Outfitters Inc. (NYSE: AEO) currently has a market cap of 3.19B.
American Eagle Outfitters Inc. (NYSE: AEO) Average Daily Trading Volume
1,045,143 shares crossed the trading desk yesterday, below the norm, out of a total float 164,891,000. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to determine large volume growth or dissemination by institutional investors.
As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly 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 research thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
American Eagle Outfitters Inc. (NYSE: AEO) 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 impactful decisions on trades.
Trades for American Eagle Outfitters Inc. (NYSE: AEO) have ranged from $12.78 – 19.55, and the stock now has a 50-day MA of $17.43 and 200-day MA of $17.33. Today’s last price is 10.33%% lower than the 52 week high of $19.55.
Earnings growth is a crucial factor to consider when investing in stocks and investors watch for companies that have raised their earnings by at least 25% over the past 3 years.
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