Noble Corporation (NE) stock down despite upgrade at Morgan Stanley

Noble Corporation (NYSE: NE) shares fell back in value on Thursday February 2 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, -0.10% 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.

Analysts at Morgan Stanley upgraded shares of Noble Corporation (NYSE: NE) from Underweight to Equal Weight today. With a rating of Equal Weight on the stock, the company has a 52-week high of $13.90. As a means of comparison, a number of other analysts have commented on the company in recent days, and Noble Corporation has earned a consensus one-year price target of $6.97, higher than the opening price of $6.94. Stock prices often shift to the upside on recommendations and new price targets of professional analysts.

Shares of Noble Corporation (NYSE: NE) opened at $6.94 yesterday and traded in a range between, $6.72 and $7.01, and last traded at $6.79, which represents a dip of $0.09 compared to the previous closing price.

Noble Corporation (NYSE: NE) now has a market cap of 1.65B.

Noble Corporation (NYSE: NE) Average Daily Trading Volume

1,323,946 shares crossed the trading desk yesterday, 97 percent below the norm, out of a total float 240,805,000. 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 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 substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.

Noble Corporation (NYSE: NE) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

Trades for Noble Corporation (NYSE: NE) have ranged from $4.45 – 13.90, and the stock now has a 50-day MA of $6.83 and 200-day MA of $6.29. Today’s last price is 51.15%% under the 52 week high of $13.90.

Earnings growth is an important factor to look at when buying stocks and investors look for companies that have been successful at growing their earnings at least 25% or more over the past 3 years.

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