Transocean Ltd. (NYSE: RIG) shares rose in value on Wednesday January 25 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, 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 Piper Jaffray Companies upgraded shares of Transocean Ltd. (NYSE: RIG) from Underweight to Neutral today. With a rating of Neutral on the shares, the company has a 52-week high of $16.66. A number of other analysts have commented on the company recently, and Transocean Ltd. has secured a consensus one-year price target of $12.75, lower than the opening price of $15.04. Share prices often shift to the upside on recommendations and new price targets of professional analysts.
Yesterday Transocean Ltd. (NYSE: RIG) shares last traded at $15.38, an increase of $0.46 over the previous closing price. Opening at $15.04, they varied from $15.04 and $15.41 throughout the day.
Transocean Ltd. (NYSE: RIG) currently has a market cap of 5.62B.
Transocean Ltd. (NYSE: RIG) Average Daily Trading Volume
3,116,015 shares crossed the trading desk yesterday, 56 percent below the norm, out of a total float 365,278,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, 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 validation to see them taking a postion in a stock you are considering.
Transocean Ltd. (NYSE: RIG) 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, Transocean Ltd. (NYSE: RIG) now has a 50-day MA of $15.13 and 200-day MA of $11.63. It has traded in a 52-week range between $7.67 – 16.6600 and today’s last price is 7.68%% lower than the 52 week high of $16.66.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.
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