Ameren Corp. (AEE) Shares Tick Up after Upgrade at Zacks Investment Research

Ameren Corp. (NYSE: AEE) shares rose in value Wednesday Dec 14 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.

The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.

Analysts at Zacks Investment Research upgraded shares of Ameren Corp. (NYSE: AEE) from Hold to Buy today. With a rating of Buy on the shares, Ameren Corp. has a 52-week high of $54.08. The one-year price target of $50.79 is lower than the opening price of $52.03, resulting a fair amount of other analysts to report on the stock in recent days. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.

Ameren Corp. (NYSE: AEE) shares last traded at $51.94, which is an increase of $0.02 or 0.04% from the previous closing price. Opening at $52.03, they fluctuated from $51.88 and $52.36 throughout the day.

Ameren Corp. (NYSE: AEE) now has a market cap of 12.60B.

Ameren Corp. (NYSE: AEE) Average Daily Trading Volume

The stock’s average daily volume is 1,629,380 shares out of a total float 241,824,000 and some 69,390 shares crossed the trading desk yesterday, below normal. Swing traders often use upticks in trading volume to determine substantial volume growth or circulation by institutional investors, so trading volume is likely to increase in the next few days.

While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.

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 that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Ameren Corp. (NYSE: AEE) 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 successful trades.

With that in mind, Ameren Corp. (NYSE: AEE) now has a 50-day MA of $49.39 and 200-day MA of $50.26. It has traded in a 52-week range between $41.41 – 54.08 and today’s last price is 3.96%% lower than the 52 week high of $54.08.

Earnings growth is a crucial factor to consider when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% over the past 3 years.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and 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.

Leave a Reply

Your email address will not be published. Required fields are marked *