United States Steel Corp. (NYSE: X) shares fell on Tuesday Nov 29 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
U.S. stocks on Tuesday morning traded near break-even levels, with the main benchmarks switching in and out of negative territory
The Dow Jones Industrial Average DJIA, -0.09% was flat at 19,102. Meanwhile, the Nasdaq Composite COMP, +0.00% traded 18 points, or 0.1%, at 5,362.
The S&P 500 index SPX, -0.04% was off by 0.1%, or 2 points, at 2,199, with five of the 11 main sectors trading lower.
Shares of United States Steel Corp. (NYSE: X) were downgraded by analysts at Argus in a note to their investors today. With a rating of Hold on the stock, United States Steel Corp. has a 52-week high of $33.78. As a means of comparison, a number of other analysts have commented on the stock in recent days, and the company has earned a consensus one-year price target of $22.60, a decrease compared to the opening price of $30.59. Downgrades occur when analysts believe that the future prospects for the security have diminished from the initial recommendation, often due to an important and crucial digression in the company’s procedures, future outlook or industry.
Shares of United States Steel Corp. (NYSE: X) opened at $30.59 on Tuesday trading between $30.24 and $31.27, and last traded at $30.40, which represents a dip of $1.77 per share or -5.50% from the previous closing price.
United States Steel Corp. (NYSE: X) now has a market cap of 5.24B.
United States Steel Corp. (NYSE: X) Average Daily Trading Volume
The stock’s average daily volume is 18,894,100 shares out of a total float 167,950,000 and some 5,948,377 shares traded hands yesterday, below normal. Swing traders often use upticks in trading volume to determine large volume growth or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by 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 watching their interests is a good way to make sure you are buying the right stocks.
United States Steel Corp. (NYSE: X) 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, United States Steel Corp. (NYSE: X) now has a 50-day MA of $22.55 and 200-day MA of $19.81. It has traded in a 52-week range between $6.15 – 33.78 and today’s last price is 10.01%% lower than the 52 week high of $33.78.
Earnings growth is a crucial factor to consider when buying stocks and investors identify companies that have raised their earnings at least 25% or more for a 3 year period.
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