EP Energy Corporation (NYSE: EPE) shares fell on Wednesday Jan 4 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 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.
Shares of EP Energy Corporation (NYSE: EPE) were downgraded by analysts at Citigroup Inc. in a note to their investors today. With a rating of Sell on the stock, the company has a 52-week high of $7.49. The one-year price target of $57.50 is above the opening price of $6.51, that has caused a fair amount of other analysts to report on the company in recent days. Downgrades happen when analysts consider that the future prospects for the security have weakened from the original recommendation, usually due to a material and major change in the company’s procedures, future outlook or industry.
EP Energy Corporation (NYSE: EPE) shares last traded at $6.49, a decrease of $0.25 per share or -0.04 from the previous closing price. Opening at $6.51, they varied from $6.41 and $6.65 throughout the day.
EP Energy Corporation (NYSE: EPE) currently has a market cap of 1.64B.
EP Energy Corporation (NYSE: EPE) Average Daily Trading Volume
418,872 shares crossed the trading desk yesterday, lower than the average, out of a total float 37,673,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings 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 retain substantial teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
EP Energy Corporation (NYSE: EPE) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for EP Energy Corporation (NYSE: EPE) have ranged from $1.60 – 7.49, and the stock now has a 50-day MA of $5.72 and 200-day MA of $4.62. Today’s last price is 0.13% below the 52 week high of $7.49.
Earnings growth is an important factor to research when investing in stocks and investors identify companies that have been successful at growing their earnings at least 25% or more for a 3 year period.
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