Shares of Alleghany Corp. (NYSE: Y) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Sell on the stock, the company has a 52-week high of $553.48. The one-year price target of $19.75 is a decrease compared to the opening price of $523.64, resulting a fair amount of other analysts to comment on the stock in recent days. Downgrades happen when analysts consider that the future prospects for the security have diminished from the initial recommendation, often due to a considerable and major digression in the company’s operations, future outlook or industry.
The Fed stood pat on interest rates on Wednesday, helping stocks to mostly higher levels but Chairwoman Janet Yellen indicated an interest rate hike is likely by year’s end
On Wednesday, the S&P 500 SPX, +1.09% ended 1.1% higher, while the Dow DJIA, +0.90% jumped by 0.9%, or 164 points, as each exchange finished in positive territory for a second consecutive day.
The tech-heavy Nasdaq Composite COMP, +1.03% tacked on 1% and scored a record closing high.
S&P 500 futures ESZ6, +0.36% were up 6.55 points, or 0.3%, to 2,162.75 early Thursday, while Dow Jones Industrial Average futures YMZ6, +0.37% rose 58 points, or 0.3%, to 18,276. Nasdaq-100 futures NQZ6, +0.39% gained 16.25 points, or 0.3%, to 4,866.25.
Shares of Alleghany Corp. (NYSE: Y) opened at $523.64 yesterday trading between $518.72 and $529.62, and last traded at $527.81, an increase of $5.80 from the previous closing price.
Alleghany Corp. (NYSE: Y) now has a market cap of 8.15B.
51,905 shares crossed the trading desk yesterday, higher than normal, out of a total float 14,822,000. Heavy volume accumulation by institutional investors may be on the horizon as the combination of large increases in trading volume and price appreciation can be deciding components.
However, one day of high volume buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator 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 have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Traders can make educated trades when they follow the trading habits of professional investors.
Trades for Alleghany Corp. (NYSE: Y) have ranged from $446.50 – 553.48, and the stock now has a 50-day MA of $530.05 and 200-day MA of $523.06. Today’s last price is 0.05% under the 52 week high of $553.48.
Earnings growth is a crucial factor to look at when buying stocks and investors seek companies that have grown their earnings by at least 25% for a 3 year period.
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