Kansas City Southern (KSU) Shares Active after Upgrade at Aegis

Kansas City Southern (NYSE: KSU) shares rose in value Thursday Dec 15 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Analysts at Aegis upgraded shares of Kansas City Southern (NYSE: KSU) from Hold to Buy today. The company currently has a rating of Buy on the stock. The one-year price target of $97.63 is above the opening price of $85.12, causing a fair amount of other analysts to comment on the company recently. Looking back over the last year, Kansas City Southern stock has a high of $100.69. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.

Kansas City Southern (NYSE: KSU) shares last traded at $86.31, which is an increase of $1.60 or 1.89% from the previous closing price. Opening at $85.12, they varied from $85.04 and $86.69 throughout the day.

Kansas City Southern (NYSE: KSU) now has a market cap of 9.29B.

Kansas City Southern (NYSE: KSU) Average Daily Trading Volume

220,456 shares traded hands yesterday, lower than normal, out of a total float 106,860,000. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to identify heavy volume aggregation or dissemination by institutional investors.

However, a single day of high volume buy side trading is not enough to affirm a trend. So market traders will continue to watch for institutional sponsorship as a cue 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.

These instituitional investors retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Kansas City Southern (NYSE: KSU) 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 successful trades.

Trades for Kansas City Southern (NYSE: KSU) have ranged from $62.20 – 100.69, and the stock now has a 50-day MA of $86.72 and 200-day MA of $91.62. Today’s last price is 14.28%% below the 52 week high of $100.69.

Earnings growth is a critical factor to look at when buying stocks and investors watch for companies that have grown their earnings by at least 25% for a 3 year period.

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