Shares of American Electric Power Co. (NYSE: AEP) were downgraded by analysts at Jefferies Group in a note to their investors today. With a rating of Hold on the shares, American Electric Power Co. has a 52-week high of $71.32. The one-year price target of $71.91 is higher than the opening price of $65.23, that has caused a number of other analysts to report on the stock in recent days. Downgrades happen when analysts believe that the future prospects for the security have dropped from the initial recommendation, often caused by a considerable and major change in the company’s actions, future direction or industry.
U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.
The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.
The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.
Shares of American Electric Power Co. (NYSE: AEP) opened at $65.23 yesterday trading between $65.01 and $65.69, and last traded at $65.01, a drop of $0.41 from the previous closing price.
American Electric Power Co. (NYSE: AEP) currently has a market cap of 31.97B.
2,233,058 shares traded hands yesterday, 116 percent below the norm, out of a total float 491,620,000. Investors often use increases in trading volume to determine heavy volume accumulation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are considering.
Traders are able to make make educated trades when they track the activity of professional investors.
Trades for American Electric Power Co. (NYSE: AEP) have ranged from $53.30 – 71.32, and the stock now has a 50-day MA of $66.05 and 200-day MA of $66.19. Today’s last price is 0.09% below the 52 week high of $71.32.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% for the past 3 years.
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