KapStone Paper and Packaging Corp. (NYSE: KS) shares rose in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Bank of America Corp. upgraded shares of KapStone Paper and Packaging Corp. (NYSE: KS) from Neutral to Buy today. With a rating of Buy on the shares, KapStone Paper and Packaging Corp. has a 52-week high of $24.91. The one-year price target of $21.40 is higher than the opening price of $19.38, that has caused a fair amount of other analysts to report on the company in recent days. Usually, after analysts give an upgrade report on a stock, they will later issue periodic updates, often followed by a price target change.
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
Shares of KapStone Paper and Packaging Corp. (NYSE: KS) opened at $19.38 yesterday and traded in a range between, $18.79 and $19.38, and last traded at $19.08, a spike of $0.16 or 0.01 compared to the previous closing price.
KapStone Paper and Packaging Corp. (NYSE: KS) currently has a market cap of 1.84B.
KapStone Paper and Packaging Corp.Trading Volume
The stock’s average daily volume is 1,324,280 shares out of a total float 82,813,000 and some 353,197 shares crossed the trading desk yesterday, lower than the norm. Trading volume is likely to increase in the next few days as investors often use swings in trading volume to determine heavy volume growth or dissemination by institutional investors.
While higher 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 delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
KapStone Paper and Packaging Corp. 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 investors to make those trends work in their favor and increase the number of winning trades.
Trades for KapStone Paper and Packaging Corp. (NYSE: KS) have ranged from $8.95 – 24.91, and the stock now has a 50-day MA of $17.50 and 200-day MA of $15.15. Today’s last price is 0.23% below the 52 week high of $24.91.
Earnings growth is a crucial factor to look at when buying stocks and investors identify companies that have raised their earnings by at least 25% over 3 consecutive years.
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