Viper Energy Partners LP (NASDAQ: VNOM) shares rose in value on Tuesday January 31 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, The Dow Jones Industrial Average DJIA, -0.60% fell 140 points, or 0.7%, to 19,833, with 26 of the 30 blue-chip companies trading lower. Nike, Inc. NKE, -1.10% down 2.4% and Intel Corp. INTC, -1.70% off 1%, were leading losses.
The S&P 500 SPX, -0.33% was off by 10 points, or 0.5%, to 2,270 with seven of the 11 main sectors trading lower. Industrials, consumer-discretionary, and technology shares were the worst performers, while real estate and utilities stocks attracted buyers.
The health-care sector, which was down in early trade, rebounded after President Trump called for scaling back drugmaker’s regulation, lowering taxes and prices of medicines.
The Nasdaq Composite COMP, -0.25% declined 31 points, or 0.6%, to 5,581.
Analysts at Credit Suisse Group upgraded shares of Viper Energy Partners LP (NASDAQ: VNOM) from Neutral to Outperform today. Credit Suisse Group currently has a rating of Outperform on the stock. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and Viper Energy Partners LP has earned a consensus one-year price target of $20.11, higher than the opening price of $16.41, a difference of 12.45 percent. Viper Energy Partners LP stock has a 52-week high of $20.25. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of Viper Energy Partners LP (NASDAQ: VNOM) opened at $16.41 yesterday and traded in a range between, $16.15 and $16.49, and last traded at $16.15, a spike of $0.10 from the previous closing price.
Viper Energy Partners LP (NASDAQ: VNOM) now has a market cap of 1.42B.
Viper Energy Partners LP (NASDAQ: VNOM) Average Daily Trading Volume
17,996 shares traded hands yesterday, 38 percent below the average, out of a total float 22,394,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
Viper Energy Partners LP (NASDAQ: VNOM) 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 Viper Energy Partners LP (NASDAQ: VNOM) have ranged from $13.53 – 20.25, and the stock now has a 50-day MA of $16.24 and 200-day MA of $16.18. Today’s last price is 20.25%% below the 52 week high of $20.25.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings at least 25% or more over a 3 year period.
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