Alcoa Corp. (NYSE: AA) shares rose in value on Monday February 6 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Investors turned cautious in early trading today with the Dow Jones Industrial Average DJIA, was off by 17 points, or 0.1%, to 20.054.
The S&P 500 SPX, -0.14% eased 5 points, or 0.2%, to 2,293, with seven of the 11 main sectors trading lower. Nearly all main sectors were trading lower, while materials and consumer staples led the losses.
The Nasdaq Composite COMP, -0.14% slipped 10 points, or 0.2%, at 5,144.
Analysts at Vetr Inc. upgraded shares of Alcoa Corp. (NYSE: AA) from Sell to Hold today. Vetr Inc. currently has a rating of Hold on the stock. The one-year price target of $37.15 is higher than the opening price of $36.90, causing a fair amount of other analysts to report on the company in recent days. Looking back over the last 52 weeks, Alcoa Corp. stock has a high of $38.94. Typically, after analysts publish an upgrade report on a stock, they will subsequently issue periodic revisions, usually followed by a price target change.
Shares of Alcoa Corp. (NYSE: AA) opened at $36.90 yesterday trading between $36.80 and $37.60, and last traded at $37.30, an increase of $0.44 from the previous closing price.
Alcoa Corp. (NYSE: AA) currently has a market cap of 6.82B.
Alcoa Corp. (NYSE: AA) Average Daily Trading Volume
294,679 shares crossed the trading desk yesterday, 94 percent lower than normal, out of a total float 146,463,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, 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 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 it is good validation to see them taking a postion in a stock you’re considering.
Alcoa Corp. (NYSE: AA) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Alcoa Corp. (NYSE: AA) now has a 50-day MA of $32.71 and 200-day MA of $29.78. It has traded in a 52-week range between $20.00 – 38.94 and today’s last price is 4.21%% lower than the 52 week high of $38.94.
Earnings growth is a critical factor to look at when buying stocks and investors identify companies that have grown their earnings at least 25% or more for 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.