United States Steel Corp. (NYSE: X) shares rose in value Monday Nov 14 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close. The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Vetr Inc. upgraded shares of United States Steel Corp. (NYSE: X) from Hold to Strong-Buy today. With a rating of Strong-Buy on the shares, the company has a 52-week high of $27.83. 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 $20.93, a decrease compared to the opening price of $27.05, a difference of 7.53 percent. Typically, after analysts assign an upgrade report on a stock, they will subsequently issue recurring revisions, such as a price target change.
Shares of United States Steel Corp. (NYSE: X) opened at $27.05 on Monday trading between $26.52 and $27.83, and last traded at $27.78, an increase of $2.07 or 8.05% from the previous closing price.
United States Steel Corp. (NYSE: X) now has a market cap of 4.79B.
United States Steel Corp.Average Daily Trading Volume
The stock’s average daily volume is 18,103,700 shares out of a total float 167,950,000 and some 26,133,208 shares crossed the trading desk yesterday, above normal. Large gains in trading volume and price inflation together could signal excessive volume accumulation by institutional investors.
While an increase in trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
United States Steel 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 following the activity of these professional investors and how they affect moving averages, traders are able to make make educated trades.
With that in mind, United States Steel Corp. (NYSE: X) now has a 50-day MA of $19.23 and 200-day MA of $18.91. It has traded in a 52-week range between $6.15 – 27.83 and today’s last price is 0.18%% lower than the 52 week high of $27.83.
Earnings growth is a critical factor to consider when buying stocks and investors look for companies that have increased their earnings by at least 25% over 3 consecutive years.
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