BP p.l.c. (BP) stock moves up, “Buy” rating reaffirmed by HSBC Analysts

BP p.l.c. (NYSE: BP) shares rose in early trading today on 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 in early trading, the Dow Jones Industrial Average DJIA, +0.31% rose 24 points, or 0.1%, to 19,883, while the S&P 500 index ESH7, +0.13% dipped less than 1 point to 2,268. The Nasdaq Composite COMP, +0.02% which reached its fourth-straight record close on Tuesday, rose 1 point to 5,553.

HSBC analysts reiterated its Buy rating on BP p.l.c. (NYSE: BP) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Buy on the shares, the company has a 52-week high of $38.68. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and BP p.l.c. has secured a consensus one-year price target of $38.32, above the opening price of $37.20, a difference of 10.27 percent. Typically, after analysts issue a “reiterated rating” report on a stock, they will subsequently issue other revisions, such as a price target change.

Shares of BP p.l.c. (NYSE: BP) opened at $37.20 yesterday trading between $37.18 and $37.34, and last traded at $37.30, an increase of $0.19 over the previous closing price.

BP p.l.c. (NYSE: BP) now has a market cap of 117.58B.

BP p.l.c. (NYSE: BP) Average Daily Trading Volume

671,984 shares crossed the trading desk yesterday, 35 percent lower than the norm, out of a total float 3,052,808,000. 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.

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 teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are researching.

BP p.l.c. (NYSE: BP) 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

Trades for BP p.l.c. (NYSE: BP) have ranged from $27.01 – 38.68, and the stock now has a 50-day MA of $36.28 and 200-day MA of $35.03. Today’s last price is 3.57%% under the 52 week high of $38.68.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more for 3 consecutive years.

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