Resolute Energy Corporation (NYSE: REN) shares rose in value on Wednesday January 18 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 trade today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.
Analysts at Zacks Investment Research upgraded shares of Resolute Energy Corporation (NYSE: REN) from Hold to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $48.75 is higher than the opening price of $44.65, resulting a number of other analysts to issue statements on the company in recent days. Looking back over the last 52 weeks, Resolute Energy Corporation stock has a high of $45.39. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday Resolute Energy Corporation (NYSE: REN) shares last traded at $45.02, which represents a jump of $0.05 over the previous closing price. Opening at $44.65, they varied from $44.25 and $45.09 throughout the day.
Resolute Energy Corporation (NYSE: REN) currently has a market cap of 687.91M.
Resolute Energy Corporation (NYSE: REN) Average Daily Trading Volume
72,113 shares crossed the trading desk yesterday, 35 percent below the norm, out of a total float 12,413,000. 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.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks, so it is good corroboration 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.
Trades for Resolute Energy Corporation (NYSE: REN) have ranged from $2.25 – 45.39, and the stock now has a 50-day MA of $38.11 and 200-day MA of $24.57. Today’s last price is 0.82%% lower than the 52 week high of $45.39.
Earnings growth is a critical factor to research when buying stocks and investors identify companies that have grown their earnings by at least 25% over a 3 year period.
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