Freeport-McMoran Copper & Gold Inc. (FCX) Stock Up After Upgrade at Deutsche Bank AG

Freeport-McMoran Copper & Gold Inc. (NYSE: FCX) shares rose in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Analysts at Deutsche Bank AG upgraded shares of Freeport-McMoran Copper & Gold Inc. (NYSE: FCX) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $14.20. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has earned a consensus one-year price target of $11.51, above the opening price of $10.98. Share prices sometimes get a spike to the upside when analysts upgrade a stock.

Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.

The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.

The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.

The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298

Freeport-McMoran Copper & Gold Inc. (NYSE: FCX) shares last traded at $10.92, a spike of $0.06 or 0.01 compared to the previous closing price. Opening at $10.98, they fluctuated from $10.87 and $11.20 throughout the day.

Freeport-McMoran Copper & Gold Inc. (NYSE: FCX) currently has a market cap of 14.50B.

Freeport-McMoran Copper & Gold Inc.Trading Volume

The stock’s average daily volume is 30,462,800 shares out of a total float 1,204,889,000 and some 8,343,215 shares traded hands yesterday, below the average. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to pinpoint heavy volume aggregation or dissemination by institutional investors.

While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive indicator 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.

Professional investors such as these have teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are researching.

Freeport-McMoran Copper & Gold Inc. 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 investors to make those trends work in their favor and increase the number of winning trades.

With that in mind, Freeport-McMoran Copper & Gold Inc. (NYSE: FCX) now has a 50-day MA of $10.86 and 200-day MA of $11.20. It has traded in a 52-week range between $3.52 – 14.20 and today’s last price is 0.23% lower than the 52 week high of $14.20.

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

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