Patterson-UTI Energy, Inc. (NASDAQ: PTEN) shares rose on Wednesday January 25 on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened
The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.
The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.
All three main indexes set intraday records shortly after the opening bell.
Analysts at Goldman Sachs Group, Inc. (The) reiterated a Neutral rating on shares of Patterson-UTI Energy, Inc. (NASDAQ: PTEN) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. Goldman Sachs Group, Inc. (The) currently has a rating of Neutral on the shares. As a means of comparison, a number of other analysts have spoken on the company recently, and the company has secured a consensus one-year price target of $28.19, above the opening price of $27.46, a difference of 9.98 percent. Patterson-UTI Energy, Inc. stock has a 52-week high of $29.56. Stock prices sometimes get a boost to the upside when analysts reiterate coverage.
Shares of Patterson-UTI Energy, Inc. (NASDAQ: PTEN) opened at $27.46 yesterday and traded in a range between, $27.46 and $28.45, and last traded at $28.24, which represents an increase of $1.24 from the previous closing price.
Patterson-UTI Energy, Inc. (NASDAQ: PTEN) now has a market cap of 4.14B.
Patterson-UTI Energy, Inc. (NASDAQ: PTEN) Average Daily Trading Volume
The stock’s average daily volume is 3,439,900 shares out of a total float 143,224,000 and some 7,304,358 shares traded hands yesterday, 85 percent above the average. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation 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 just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Patterson-UTI Energy, Inc. (NASDAQ: PTEN) 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, Patterson-UTI Energy, Inc. (NASDAQ: PTEN) now has a 50-day MA of $27.56 and 200-day MA of $23.02. It has traded in a 52-week range between $11.63 – 29.56 and today’s last price is 4.45%% lower than the 52 week high of $29.56.
Earnings growth is an important factor to consider when investing in stocks and investors seek companies that have increased their earnings by at least 25% for 3 consecutive years.
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