Targa Resources, Inc. (NYSE: TRGP) shares fell back 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 opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Analysts at Raymond James Financial, Inc. upgraded shares of Targa Resources, Inc. (NYSE: TRGP) from Market Perform to Outperform today. With a rating of Outperform on the shares, the company has a 52-week high of $59.97. As a means of comparison, a number of other analysts have commented on the company recently, and Targa Resources, Inc. has secured a consensus one-year price target of $55.39, less than the opening price of $57.76. Usually, after analysts publish an upgrade report on a stock, they will subsequently issue sporadic revisions, often followed by a price target change.
Shares of Targa Resources, Inc. (NYSE: TRGP) opened at $57.76 yesterday and traded in a range between, $57.36 and $58.64, and last traded at $57.36, a decrease of $0.07 from the previous closing price.
Targa Resources, Inc. (NYSE: TRGP) currently has a market cap of 10.37B.
Targa Resources, Inc. (NYSE: TRGP) Average Daily Trading Volume
The stock’s average daily volume is 2,077,680 shares out of a total float 176,306,000 and some 108,288 shares traded hands yesterday, 48 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
Targa Resources, Inc. (NYSE: TRGP) 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 Targa Resources, Inc. (NYSE: TRGP) have ranged from $14.55 – 59.97, and the stock now has a 50-day MA of $55.06 and 200-day MA of $47.35. Today’s last price is 4.35%% lower than the 52 week high of $59.97.
Earnings growth is an important factor to look at when buying stocks and investors look for companies that have grown their earnings by at least 25% over the past 3 years.
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.