Diamond Offshore Drilling Inc. (DO) stock trades up, “Hold” rating reiterated by Jefferies Group Analysts

Diamond Offshore Drilling Inc. (NYSE: DO) shares rose on Thursday Nov 17 with 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, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”

The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.

Analysts at Jefferies Group reiterated a Hold rating on shares of Diamond Offshore Drilling Inc. (NYSE: DO) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Hold on the stock, the company has a 52-week high of $26.72. A number of other analysts have issued reports on the stock recently, and Diamond Offshore Drilling Inc. has earned a consensus one-year price target of $16.86, lower than the opening price of $17.09. Share prices sometimes get a boost to the upside when analysts reiterate coverage.

Diamond Offshore Drilling Inc. (NYSE: DO) shares last traded at $17.20, which represents an increase of $0.42 or 2.50% from the previous closing price. Opening at $17.09, they varied from $17.00 and $17.26 throughout the day.

Diamond Offshore Drilling Inc. (NYSE: DO) currently has a market cap of 2.36B.

Diamond Offshore Drilling Inc. (NYSE: DO) Average Daily Trading Volume

The stock’s average daily volume is 3,775,610 shares out of a total float 64,004,000 and some 165,606 shares crossed the trading desk yesterday, below the norm. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to determine substantial volume accumulation or circulation by institutional investors.

As with all potential breakouts, investors watch for volume to be at least 40%-50% greater than normal on the breakout to show that fund managers and other professional investors are jumping in.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Diamond Offshore Drilling Inc. (NYSE: DO) 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.

Traders can make more useful choices on trades when they follow the trading habits of professional investors.

Trades for Diamond Offshore Drilling Inc. (NYSE: DO) have ranged from $14.18 – 26.72, and the stock now has a 50-day MA of $16.92 and 200-day MA of $20.66. Today’s last price is 35.63%% lower than the 52 week high of $26.72.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings by at least 25% over 3 consecutive years.

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