Abraxas Petroleum Corp. (NASDAQ: AXAS) shares rose on Monday January 23 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, U.S. stocks flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
Canaccord Genuity analysts reiterated its Buy rating on Abraxas Petroleum Corp. (NASDAQ: AXAS) 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 $2.99. As a means of comparison, a number of other analysts have spoken on the company in recent days, and Abraxas Petroleum Corp. has earned a consensus one-year price target of $2.80, higher than the opening price of $2.50. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Abraxas Petroleum Corp. (NASDAQ: AXAS) shares last traded at $2.57, which represents an increase of $0.06 compared to the previous closing price. Opening at $2.50, they ranged from $2.50 and $2.59 throughout the day.
Abraxas Petroleum Corp. (NASDAQ: AXAS) currently has a market cap of 343.32M.
Abraxas Petroleum Corp. (NASDAQ: AXAS) Average Daily Trading Volume
520,061 shares traded hands yesterday, 17 percent lower than the average, out of a total float 124,097,000. 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.
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. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Abraxas Petroleum Corp. (NASDAQ: AXAS) 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.
With that in mind, Abraxas Petroleum Corp. (NASDAQ: AXAS) now has a 50-day MA of $2.56 and 200-day MA of $1.76. It has traded in a 52-week range between $0.76 – 2.99 and today’s last price is 14.05%% lower than the 52 week high of $2.99.
Earnings growth is an important factor to consider when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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