Energen Corporation (NYSE: EGN) shares fell on Thursday February 2 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, The Dow Jones Industrial Average DJIA, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.
Canaccord Genuity analysts reiterated its Buy rating on Energen Corporation (NYSE: EGN) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Buy on the stock, the company has a 52-week high of $64.43. The one-year price target of $67.93 is higher than the opening price of $54.33, resulting a number of other analysts to comment on the stock in recent days. Usually, after analysts give a “reiterated rating” report on a stock, they will later issue recurring revisions, such as a price target change.
Shares of Energen Corporation (NYSE: EGN) opened at $54.33 yesterday and traded in a range between, $53.22 and $54.33, and last traded at $53.49, which is a decrease of $0.71 over the previous closing price.
Energen Corporation (NYSE: EGN) now has a market cap of 5.19B.
Energen Corporation (NYSE: EGN) Average Daily Trading Volume
55,127 shares traded hands yesterday, 23 percent lower than the norm, out of a total float 96,531,000. 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, 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 have teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are researching.
Energen Corporation (NYSE: EGN) 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 Energen Corporation (NYSE: EGN) have ranged from $20.76 – 64.43, and the stock now has a 50-day MA of $56.99 and 200-day MA of $55.26. Today’s last price is 16.99%% below the 52 week high of $64.43.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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