Kinross Gold Corp. (KGC) Shares Slip, Investors Watching Closely, Here is Why

Kinross Gold Corp. (NYSE: KGC) shares rose on Monday Dec 19 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.

The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.

The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.

Analysts at BMO Capital Markets downgraded shares of Kinross Gold Corp. (NYSE: KGC) from Outperform to Market Perform in a research note to investors today. With a rating of Market Perform on the shares, Kinross Gold Corp. has a 52-week high of $5.82. The one-year price target of $5.13 is above the opening price of $3.05, causing a number of other analysts to issue statements on the stock in recent days. Downgrades occur when analysts believe that the future prospects for the security have diminished from the original recommendation, usually due to an important and major change in the company’s procedures, future vision or industry.

Kinross Gold Corp. (NYSE: KGC) shares last traded at $3.04, which represents a jump of $0.01 or 0.17% over the previous closing price. Opening at $3.05, they fluctuated from $3.01 and $3.08 throughout the day.

Kinross Gold Corp. (NYSE: KGC) now has a market cap of 3.78B.

Kinross Gold Corp. (NYSE: KGC) Average Daily Trading Volume

The stock’s average daily volume is 15,591,300 shares out of a total float 1,236,944,000 and some 3,681,089 shares crossed the trading desk yesterday, below normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify substantial volume growth or dissemination by institutional investors.

While higher 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 cue 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.

Institutional investors such as these have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Kinross Gold Corp. (NYSE: KGC) 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 more useful decisions on trades when they track the activity of professional investors.

With that in mind, Kinross Gold Corp. (NYSE: KGC) now has a 50-day MA of $3.51 and 200-day MA of $4.37. It has traded in a 52-week range between $1.31 – 5.820 and today’s last price is 47.85%% lower than the 52 week high of $5.82.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more over a 3 year period.

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