Dril-Quip, Inc. (NYSE: DRQ) shares traded mostly even in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Barclays PLC upgraded shares of Dril-Quip, Inc. (NYSE: DRQ) from Equal Weight to Overweight today. Barclays PLC currently has a rating of Overweight on the shares. A number of other analysts have issued reports on the stock in recent days, and Dril-Quip, Inc. has secured a consensus one-year price target of $55.54, less than the opening price of $62.80, a difference of 8.86 percent. Dril-Quip, Inc. stock has a 52-week high of $69.40. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Dril-Quip, Inc. (NYSE: DRQ) opened at $62.80 yesterday and traded in a range between, $61.65 and $62.95, and last traded at $62.70.
Dril-Quip, Inc. (NYSE: DRQ) currently has a market cap of 2.36B.
Dril-Quip, Inc. (NYSE: DRQ) Average Daily Trading Volume
30,554 shares traded hands yesterday, 50 percent below the average, out of a total float 37,314,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks 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.
Professional investors such as these have teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
Dril-Quip, Inc. (NYSE: DRQ) 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.
With that in mind, Dril-Quip, Inc. (NYSE: DRQ) now has a 50-day MA of $59.82 and 200-day MA of $56.09. It has traded in a 52-week range between $46.90 – 69.40 and today’s last price is 9.65%% lower than the 52 week high of $69.40.
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 grown their earnings by at least 25% over the past 3 years.
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