Aon PLC (AON) Stock Up After Upgrade at Keefe, Bruyette & Woods

Aon PLC (NYSE: AON) shares rose in value Monday Nov 21 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, stocks were set to open up this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.

Analysts at Keefe, Bruyette & Woods upgraded shares of Aon PLC (NYSE: AON) from Market Perform to Outperform today. Keefe, Bruyette & Woods currently has a rating of Outperform on the stock. The one-year price target of $116.87 is higher than the opening price of $112.68, resulting a number of other analysts to comment on the stock in recent days. Looking back over the last 52 weeks, Aon PLC stock has a high of $113.78. Usually, after analysts publish an upgrade report on a stock, they will later issue other updates, such as a price target change.

Aon PLC (NYSE: AON) shares last traded at $112.49, a spike of $0.53 or 0.47% from the previous closing price. Opening at $112.68, they varied from $112.48 and $113.47 throughout the day.

Aon PLC (NYSE: AON) now has a market cap of 29.60B.

Aon PLC (NYSE: AON) Average Daily Trading Volume

The stock’s average daily volume is 885,859 shares out of a total float 257,263,000 and some 167,951 shares traded hands yesterday, lower than the average. Investors often use upticks in trading volume to identify heavy volume aggregation or circulation by institutional investors, so look for trading volume to pick up in the coming days.

While increased 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 sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Aon PLC (NYSE: AON) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

Trades for Aon PLC (NYSE: AON) have ranged from $83.83 – 113.78, and the stock now has a 50-day MA of $110.46 and 200-day MA of $109.28. Today’s last price is 1.13%% below the 52 week high of $113.78.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.

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