Arch Coal (ARCH) Stock Down After Price Target Increase at FBR & Co

Arch Coal (NASDAQ: ARCH) shares were down on Wednesday Nov 23 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.

Meanwhile, in early trading, the Dow Jones Industrial Average DJIA, -0.03% fell 3.5 points to 19,019, essentially unchanged on the day. The S&P 500 SPX, -0.26% fell 7 points, or 0.3%, to 2,196, while the Nasdaq Composite Index COMP, -0.48% shed 34 points to 5,353, a loss of 0.6%.

Arch Coal (NASDAQ: ARCH) had its price target raised by equities researchers at FBR & Co from $90.00 to $94.00. The company currently has a rating of Outperform on the shares. The one-year price target of $95.20 is higher than the opening price of $77.94, causing a number of other analysts to issue statements on the stock recently. Looking back over the last 52 weeks, Arch Coal stock has a high of $86.47.

Shares of Arch Coal (NASDAQ: ARCH) opened at $77.94 on Tuesday and has traded in a range between, $74.44 and $77.94, and last traded at $74.52, a drop of $2.80 per share or -3.62% compared to the previous closing price.

Arch Coal (NASDAQ: ARCH) currently has a market cap of 1.86B.

Arch Coal (NASDAQ: ARCH) Average Daily Trading Volume

The stock’s average daily volume is 1,001,120 shares out of a total float 21,280,000 and some 16,381 shares crossed the trading desk yesterday, below the average. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or dissemination by institutional investors.

However, a single day of heavy buy side trading is not enough to assert a trend. So market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.

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 buying a stock you are researching.

Arch Coal (NASDAQ: ARCH) 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 investors to make those trends work in their favor and increase the number of winning trades.

Trades for Arch Coal (NASDAQ: ARCH) have ranged from $0.04 – 86.47, and the stock now has a 50-day MA of $70.57 and 200-day MA of $18.54. Today’s last price is 13.82%% below the 52 week high of $86.47.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more over 3 consecutive years.

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