RPC Inc. (NYSE: RES) shares fell on Thursday December 29 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, U.S. stocks were little changed in early trade Thursday. The S&P 500 SPX, +0.04% rose 0.1% to 2,252, while the Dow DJIA, +0.04% advanced 16 points to 19,850. The Nasdaq Composite COMP, -0.04% was virtually flat at 5,439.
Analysts at Zacks Investment Research downgraded shares of RPC Inc. (NYSE: RES) from Buy to Hold in a research note to investors today. Zacks Investment Research currently has a rating of Hold on the stock. The one-year price target of $19.25 is lower than the opening price of $19.93, resulting a number of other analysts to issue statements on the stock recently. Looking back over the last year, RPC Inc. stock has a high of $22.28. Downgrades are more likely when analysts consider that the future prospects for the security have dropped from the original recommendation, usually caused by a material and integral digression in the company’s operations, future direction or industry.
RPC Inc. (NYSE: RES) shares last traded at $19.95, which is a decrease of $0.03 per share or -0.15% from the previous closing price. Opening at $19.93, they ranged from $19.93 and $20.03 throughout the day.
RPC Inc. (NYSE: RES) now has a market cap of 4.34B.
RPC Inc. (NYSE: RES) Average Daily Trading Volume
The stock’s average daily volume is 1,795,910 shares out of a total float 67,701,000 and some 57,351 shares crossed the trading desk yesterday, below normal. Trading volume is likely to increase in the next few days as momentum traders often use swings in trading volume to determine heavy volume growth or distribution by institutional investors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to demonstrate 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.
These professional investors retain substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
RPC Inc. (NYSE: RES) 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 are able to make make the best trades when they follow the activity of professional investors.
Trades for RPC Inc. (NYSE: RES) have ranged from $9.73 – 22.28, and the stock now has a 50-day MA of $19.43 and 200-day MA of $16.74. Today’s last price is 10.46%% under the 52 week high of $22.28.
Earnings growth is a critical factor to look at when buying stocks and investors identify companies that have increased their earnings at least 25% or more for the past 3 years.
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