Alcoa Inc. (AA) stock falls, “Buy” rating reiterated by Bank of America Corp. Analysts

Alcoa Inc. (NYSE: AA) shares fell in early trade today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.

Meanwhile stocks opened fat this morning as investors wait on the minutes from the Federal Reserve’s latest policy meeting, which may confirm expectations for a December rate hike.

The S&P 500 was up 2 points, or 0.1%, to 2,138. The Dow Jones Industrial Average was flat at 18,128. The Nasdaq Composite began the session unchanged at 5,247.

Alcoa Inc. (NYSE: AA) had its Buy rating reiterated by equities researchers at Bank of America Corp. in a research note to investors. With a rating of Buy on the shares, the company has a 52-week high of $34.50. The one-year price target of $33.36 is higher than the opening price of $27.52, resulting a number of other analysts to comment on the company in recent days. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.

Alcoa Inc. (NYSE: AA) shares last traded at $27.34, a decrease of $0.57 per share or -0.02 compared to the previous closing price. Opening at $27.52, they fluctuated from $27.05 and $27.52 throughout the day.

Alcoa Inc. (NYSE: AA) currently has a market cap of 11.99B.

Alcoa Inc.Trading Volume

The stock’s average daily volume is 6,318,780 shares out of a total float 438,138,000 and some 4,325,327 shares crossed the trading desk yesterday, below normal. Swing traders often use swings in trading volume to pinpoint large volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.

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

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.

Alcoa Inc. 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.

Traders can make well planned trades when they track the trading habits of professional investors.

Trades for Alcoa Inc. (NYSE: AA) have ranged from $18.42 – 34.50, and the stock now has a 50-day MA of $29.84 and 200-day MA of $29.85. Today’s last price is 0.21% under the 52 week high of $34.50.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more for a 3 year period.

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