Laredo Petroleum Inc. (NYSE: LPI) shares rose in value on Friday January 20 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 rose Friday morning as Wall Street closely awaited Donald Trump’s inauguration as the nation’s 45th president.
The Dow Jones Industrial Average DJIA, +0.41% rose 95 points, or 0.5%, to 19,826, while the S&P 500 index SPX, +0.41% climbed 11 points, or 0.5%, to 2,275 and the Nasdaq Composite COMP, +0.37% added 28 points, or 0.6%, to 5,571.
Analysts at SunTrust Banks Inc. upgraded shares of Laredo Petroleum Inc. (NYSE: LPI) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $16.47. The one-year price target of $15.13 is higher than the opening price of $13.62, causing a number of other analysts to comment on the stock recently. Typically, after analysts assign an upgrade report on a stock, they will subsequently issue sporadic updates, often followed by a price target change.
Yesterday Laredo Petroleum Inc. (NYSE: LPI) shares last traded at $13.62, which is an increase of $0.30 compared to the previous closing price. Opening at $13.62, they ranged from $13.50 and $13.75 throughout the day.
Laredo Petroleum Inc. (NYSE: LPI) currently has a market cap of 3.24B.
Laredo Petroleum Inc. (NYSE: LPI) Average Daily Trading Volume
285,368 shares crossed the trading desk yesterday, 8 percent below the norm, out of a total float 129,724,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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.
These professional investors have teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
Laredo Petroleum Inc. (NYSE: LPI) 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 investors to make those trends work in their favor and increase the number of winning trades.
Trades for Laredo Petroleum Inc. (NYSE: LPI) have ranged from $3.90 – 16.47, and the stock now has a 50-day MA of $14.32 and 200-day MA of $12.72. Today’s last price is 17.30%% under the 52 week high of $16.47.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have increased their earnings at least 25% or more for 3 consecutive years.
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