Kinross Gold Corp. (KGC) Stock Moves Down and Here’s Why

Kinross Gold Corp. (NYSE: KGC) shares fell on Monday Dec 5 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 Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.

The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.

Analysts at Citigroup Inc. downgraded shares of Kinross Gold Corp. (NYSE: KGC) from Neutral to Sell in a research note to investors today. The company currently has a rating of Sell on the stock. The one-year price target of $5.49 is above the opening price of $3.35, causing a number of other analysts to issue statements on the stock in recent days. Looking back over the last year, Kinross Gold Corp. stock has a high of $5.82. Downgrades happen when analysts consider that the future prospects for the security have weakened from the original recommendation, often because of an important and major digression in the company’s actions, future outlook or industry.

Shares of Kinross Gold Corp. (NYSE: KGC) opened at $3.35 on Tuesday and has traded in a range between, $3.29 and $3.37, and last traded at $3.30, a decrease of $0.17 per share or -4.90% over the previous closing price.

Kinross Gold Corp. (NYSE: KGC) now has a market cap of 4.11B.

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

2,032,007 shares crossed the trading desk yesterday, below the average, out of a total float 1,236,944,000. Momentum traders often use swings in trading volume to identify substantial volume aggregation or circulation by institutional investors, so look for trading volume to pick up in the coming days.

While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain teams of analysts that investigate thousands of stocks. So 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.

By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.

With that in mind, Kinross Gold Corp. (NYSE: KGC) now has a 50-day MA of $3.66 and 200-day MA of $4.48. It has traded in a 52-week range between $1.31 – 5.82 and today’s last price is 43.30%% lower than the 52 week high of $5.82.

Earnings growth is an important 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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