Abraxas Petroleum Corporation (NASDAQ: AXAS) shares rose on Wednesday Jan 4 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.
The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.
Analysts at Canaccord Genuity reiterated a Buy rating on shares of Abraxas Petroleum Corporation (NASDAQ: AXAS) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Buy on the stock, the company has a 52-week high of $2.70. As a means of comparison, a number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $2.19, a decrease compared to the opening price of $2.69. Usually, after analysts issue a “reiterated rating” report on a stock, they will later issue other updates, usually followed by a price target change.
Shares of Abraxas Petroleum Corporation (NASDAQ: AXAS) opened at $2.69 on Tuesday trading between $2.64 and $2.69, and last traded at $2.68, a spike of $0.01 or 0.00 compared to the previous closing price.
Abraxas Petroleum Corporation (NASDAQ: AXAS) now has a market cap of 358.01M.
Abraxas Petroleum Corporation (NASDAQ: AXAS) Average Daily Trading Volume
The stock’s average daily volume is 1,257,280 shares out of a total float 124,097,000 and some 236,219 shares crossed the trading desk yesterday, lower than normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher 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 substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Abraxas Petroleum Corporation (NASDAQ: AXAS) 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.
Trades for Abraxas Petroleum Corporation (NASDAQ: AXAS) have ranged from $0.65 – 2.70, and the stock now has a 50-day MA of $2.25 and 200-day MA of $1.63. Today’s last price is 0.01% below the 52 week high of $2.70.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings by at least 25% for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.