Denbury Resources Inc. (NYSE: DNR) shares rose in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trading today the Dow Jones Industrial Average DJIA, +0.19% rose 40 points, or 0.2%, to 19,929 while the S&P 500 SPX, +0.31% added 5 points to 2,275, a rise of 0.2%. The Nasdaq Composite Index COMP, +0.53% climbed 19 points, or 0.3%, to 5,567.
Analysts at Zacks Investment Research upgraded shares of Denbury Resources Inc. (NYSE: DNR) from Hold to Strong-Buy today. With a rating of Strong-Buy on the stock, Denbury Resources Inc. has a 52-week high of $4.80. The one-year price target of $3.25 is lower than the opening price of $3.79, that has caused a number of other analysts to comment on the company in recent days. Usually, after analysts issue an upgrade report on a stock, they will subsequently issue sporadic updates, such as a price target change.
Yesterday Denbury Resources Inc. (NYSE: DNR) shares last traded at $3.81, an increase of $0.03 from the previous closing price. Opening at $3.79, they ranged from $3.74 and $3.83 throughout the day.
Denbury Resources Inc. (NYSE: DNR) currently has a market cap of 1.48B.
Denbury Resources Inc. (NYSE: DNR) Average Daily Trading Volume
689,664 shares crossed the trading desk yesterday, 3 percent lower than the norm, out of a total float 383,994,000. 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 substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.
Denbury Resources Inc. (NYSE: DNR) 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, Denbury Resources Inc. (NYSE: DNR) now has a 50-day MA of $3.76 and 200-day MA of $3.19. It has traded in a 52-week range between $0.86 – 4.80 and today’s last price is 20.63%% lower than the 52 week high of $4.80.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% for the past 3 years.
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