American Equity Investment Life Holding Company (NYSE: AEL) shares rose on Monday February 13 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
American Equity Investment Life Holding Company (NYSE: AEL) had its price target raised by equities researchers at FBR & Co from $25.00 to $30.00. With a rating of Outperform on the shares, American Equity Investment Life Holding Company has a 52-week high of $26.44. As a means of comparison, a number of other analysts have commented on the company recently, and the company has secured a consensus one-year price target of $26.67, higher than the opening price of $26.38, a difference of 10.15 percent.
Yesterday American Equity Investment Life Holding Company (NYSE: AEL) shares last traded at $26.27, an increase of $0.17 over the previous closing price. Opening at $26.38, they fluctuated from $26.05 and $26.42 throughout the day.
American Equity Investment Life Holding Company (NYSE: AEL) now has a market cap of 2.31B.
American Equity Investment Life Holding Company (NYSE: AEL) Average Daily Trading Volume
67,732 shares traded hands yesterday, 82 percent below the average, out of a total float 84,908,000. 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.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them buying a stock you’re researching.
American Equity Investment Life Holding Company (NYSE: AEL) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for American Equity Investment Life Holding Company (NYSE: AEL) have ranged from $12.74 – 26.44, and the stock now has a 50-day MA of $23.50 and 200-day MA of $19.66. Today’s last price is 0.64%% under the 52 week high of $26.44.
Earnings growth is an important factor to look at when buying stocks and investors seek companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.
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