Seadrill Partners LLC (NASDAQ: SDLP) shares rose in value on Thursday February 2 on heavier 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 Seadrill Partners LLC (NASDAQ: SDLP) from Equal Weight to Overweight today. Morgan Stanley currently has a rating of Overweight on the stock. The one-year price target of $8.00 is higher than the opening price of $4.00, resulting a number of other analysts to comment on the stock in recent days. Looking back over the last year, Seadrill Partners LLC stock has a high of $6.45. Typically, after analysts assign an upgrade report on a stock, they will subsequently issue recurring revisions, such as a price target change.
Yesterday Seadrill Partners LLC (NASDAQ: SDLP) shares last traded at $4.23, which represents a jump of $0.27 over the previous closing price. Opening at $4.00, they varied from $4.00 and $4.37 throughout the day.
Seadrill Partners LLC (NASDAQ: SDLP) currently has a market cap of 388.27M.
Seadrill Partners LLC (NASDAQ: SDLP) Average Daily Trading Volume
The stock’s average daily volume is 672,206 shares out of a total float 49,002,000 and some 774,615 shares traded hands yesterday, 73 percent higher than 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Seadrill Partners LLC (NASDAQ: SDLP) 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, Seadrill Partners LLC (NASDAQ: SDLP) now has a 50-day MA of $4.32 and 200-day MA of $3.86. It has traded in a 52-week range between $1.70 – 6.4500 and today’s last price is 34.44%% lower than the 52 week high of $6.45.
Earnings growth is an important factor to look at when buying stocks and investors identify companies that have grown their earnings by at least 25% over the past 3 years.
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