Analysts at Citigroup Inc. initiated coverage on Alon USA Energy Inc. (NYSE: ALJ) stock, starting the company at Buy. As a means of comparison, a number of other analysts have commented on the shares recently, and the company has earned a consensus one-year price target of $7.69, lower than the opening price of $8.32. Alon USA Energy Inc.stock has a 52-week high of $19.84.After initiating coverage,, analysts and brokerage firms will subsequently issue periodic updates. Changes in price targets are not unusual.
Stocks closed in negative territory Wednesday in the wake of slumping crude-oil prices, erasing earlier gains for the major indices, while the tech-heavy Nasdaq bucked the losing trend.
The Dow Jones Industrial Average DJIA, -0.18% slid 31.98 points, or 0.2%, to close at 18,034.77
The S&P 500 index SPX, -0.06% fell 1.25 points to end at 2,125.77, weighed by a 1.2% drop in the energy sector.
The Nasdaq Composite Index COMP, +0.36% advanced 18.52 points, or 0.4%, to close at 5,173.77.
Typically, after analysts publish an “initiating coverage” report on a stock, they will subsequently issue periodic updates.
Shares of Alon USA Energy Inc. (NYSE: ALJ) opened at $8.32 today and traded in a range between, $8.10 and $8.51, and last traded at $8.22, which represents a change of $ 0.05 over the previous closing price.
Alon USA Energy Inc. (NYSE: ALJ) now has a market cap of 583.46M
The stocks average daily volume is 1,471,980 shares out of a total float 30,994,000 of and some 1,600,795 shares crossed the trading desk yesterday, 34 percent higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are considering.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind Alon USA Energy Inc. (NYSE: ALJ) now has a 50-day MA is $7.55 and 200-day MA is $8.43, and it has traded in a 52-week range between $5.86 – 19.84 and today’s last price is -58.57 percent off the 52 week high.
Indeed, earnings growth is among the most important things to look in regards to stock investing and, accordingly, investors seek companies who have been successful at growing their earnings by at least 25 percent over a 3 year period.
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