Nucor Corporation (NYSE: NUE) shares rose in value on Monday February 13 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Analysts at Morgan Stanley upgraded shares of Nucor Corporation (NYSE: NUE) from Equal Weight to Overweight today. With a rating of Overweight on the stock, the company has a 52-week high of $68.00. The one-year price target of $64.65 is higher than the opening price of $62.36, that has caused a number of other analysts to report on the company recently. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of Nucor Corporation (NYSE: NUE) opened at $62.36 yesterday trading between $62.24 and $63.79, and last traded at $63.12, which is a jump of $2.13 compared to the previous closing price.
Nucor Corporation (NYSE: NUE) now has a market cap of 20.19B.
Nucor Corporation (NYSE: NUE) Average Daily Trading Volume
974,167 shares crossed the trading desk yesterday, 7 percent below the average, out of a total float 318,961,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
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 teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
Nucor Corporation (NYSE: NUE) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Nucor Corporation (NYSE: NUE) now has a 50-day MA of $60.05 and 200-day MA of $54.65. It has traded in a 52-week range between $37.77 – 68.00 and today’s last price is 7.18%% lower than the 52 week high of $68.00.
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 by at least 25% for 3 consecutive years.
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