Armstrong World Industries Inc. (NYSE: AWI) shares rose on Monday Nov 14 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close.
The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Evercore ISI initiated coverage on Armstrong World Industries Inc. (NYSE: AWI) stock, rating the company at Buy. With a rating of Buy on the stock, the company has a 52-week high of $52.09. The one-year price target of $43.10 is higher than the opening price of $40.25, that has caused a fair amount of other analysts to comment on the stock in recent days. Analysts and brokerage firms will subsequently issue periodic updates after beginning or initiating coverage. Changes in price targets are not uncommon.
Armstrong World Industries Inc. (NYSE: AWI) shares last traded at $40.15, which represents a jump of $0.30 or 0.75% compared to the previous closing price. Opening at $40.25, they varied from $39.55 and $40.55 throughout the day.
Armstrong World Industries Inc. (NYSE: AWI) currently has a market cap of 2.22B.
Armstrong World Industries Inc. (NYSE: AWI) Average Daily Trading Volume
448,689 shares crossed the trading desk yesterday, lower than the norm, out of a total float 33,040,000. Swing traders often use swings in trading volume to determine large volume aggregation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by 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, so it is good validation to see them buying a stock you are considering.
Armstrong World Industries Inc. (NYSE: AWI) 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.
Traders can make smarter trades when they follow the activity of professional investors.
Trades for Armstrong World Industries Inc. (NYSE: AWI) have ranged from $35.92 – 52.09, and the stock now has a 50-day MA of $39.78 and 200-day MA of $40.93. Today’s last price is 22.92%% below the 52 week high of $52.09.
Earnings growth is an important factor to look at when investing in stocks and investors watch for companies that have raised their earnings by at least 25% over 3 consecutive years.
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