Resolute Energy Corporation (NYSE: REN) shares rose in early trading today on lower trade volume than normal after more analysts initiated coverage on the stock.
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 BMO Capital Markets initiated coverage on Resolute Energy Corporation (NYSE: REN) stock, rating the company at Outperform. BMO Capital Markets currently has a rating of Outperform on the stock. The one-year price target of $47.43 is higher than the opening price of $40.05, resulting a fair amount of other analysts to issue statements on the company recently. Looking back over the last year, Resolute Energy Corporation stock has a high of $43.35. Changes in price targets are not unheard of as analysts and brokerage firms will publish periodic updates after initiating coverage,.
Shares of Resolute Energy Corporation (NYSE: REN) opened at $40.05 yesterday and traded in a range between, $39.78 and $40.61, and last traded at $40.36, which represents a spike of $0.05 from the previous closing price.
Resolute Energy Corporation (NYSE: REN) now has a market cap of 616.62M.
Resolute Energy Corporation (NYSE: REN) Average Daily Trading Volume
76,670 shares crossed the trading desk yesterday, 41 percent below the average, out of a total float 12,839,000. lower than normal. Look for trading volume to pick up in the coming days as swing 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.
Professional investors such as these have 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 researching.
Resolute Energy Corporation (NYSE: REN) 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.
With that in mind, Resolute Energy Corporation (NYSE: REN) now has a 50-day MA of $36.31 and 200-day MA of $22.44. It has traded in a 52-week range between $2.25 – 43.350 and today’s last price is 6.91%% lower than the 52 week high of $43.35.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% over a 3 year period.
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