Delphi Automotive PLC (DLPH) stock coverage initiated with “Buy” in note to investors by Jefferies Group

Delphi Automotive PLC (NYSE: DLPH) shares rose on Wednesday Nov 30 with lower trade volume than normal after more analysts initiated coverage on the stock.

Meanwhile, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.

The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.

The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.

Analysts at Jefferies Group initiated coverage on Delphi Automotive PLC (NYSE: DLPH) stock, rating the company at Buy. With a rating of Buy on the shares, Delphi Automotive PLC has a 52-week high of $88.89. A number of other analysts have spoken on the stock in recent days, and the company has secured a consensus one-year price target of $81.73, higher than the opening price of $64.25. After beginning or initiating coverage, analysts and brokerage firms will subsequently publish periodic updates. Price changes targets are not uncommon.

Shares of Delphi Automotive PLC (NYSE: DLPH) opened at $64.25 on Tuesday trading between $63.94 and $65.96, and last traded at $65.18, which is a spike of $1.74 or 2.74% over the previous closing price.

Delphi Automotive PLC (NYSE: DLPH) currently has a market cap of 17.65B.

Delphi Automotive PLC (NYSE: DLPH) Average Daily Trading Volume

544,395 shares traded hands yesterday, lower than the norm, out of a total float 269,875,000. Momentum traders often use upticks in trading volume to pinpoint large volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.

As with all potential breakouts, investors watch for volume to be at least 40%-50% greater than normal on the breakout to indicate 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.

Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are considering.

Delphi Automotive PLC (NYSE: DLPH) 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 following the activity of these professional investors and how they affect moving averages, traders are able to make make educated trades.

With that in mind, Delphi Automotive PLC (NYSE: DLPH) now has a 50-day MA of $66.33 and 200-day MA of $67.11. It has traded in a 52-week range between $55.59 – 88.89 and today’s last price is 26.67%% lower than the 52 week high of $88.89.

Earnings growth is a critical factor to consider when buying stocks and investors identify companies that have grown their earnings at least 25% or more for a 3 year period.

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