Analysts at Goldman Sachs Group Inc. downgraded shares of Diamond Offshore Drilling Inc. (NYSE: DO) from Neutral to Sell in a research note to investors today. With a rating of Sell on the shares, the company has a 52-week high of $26.72. The one-year price target of $17.77 is above the opening price of $14.89, that has caused a fair amount of other analysts to issue statements on the company in recent days. considerable and integral changes in the company’s operations, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have diminished from the initial recommendation.
The Fed stood pat on interest rates on Wednesday, helping stocks to mostly higher levels but Chairwoman Janet Yellen indicated an interest rate hike is likely by year’s end
On Wednesday, the S&P 500 SPX, +1.09% ended 1.1% higher, while the Dow DJIA, +0.90% jumped by 0.9%, or 164 points, as each exchange finished in positive territory for a second consecutive day.
The tech-heavy Nasdaq Composite COMP, +1.03% tacked on 1% and scored a record closing high.
S&P 500 futures ESZ6, +0.36% were up 6.55 points, or 0.3%, to 2,162.75 early Thursday, while Dow Jones Industrial Average futures YMZ6, +0.37% rose 58 points, or 0.3%, to 18,276. Nasdaq-100 futures NQZ6, +0.39% gained 16.25 points, or 0.3%, to 4,866.25.
Shares of Diamond Offshore Drilling Inc. (NYSE: DO) opened at $14.89 yesterday and traded in a range between, $14.81 and $15.91, and last traded at $15.80, a jump of $0.54 from the previous closing price.
Diamond Offshore Drilling Inc. (NYSE: DO) now has a market cap of 2.17B.
3,965,006 shares crossed the trading desk yesterday, higher than the average, out of a total float 64,000,000. Significant gains in trading volume and price inflation together could indicate excessive volume accumulation by institutional investors.
However, just a day of significant buy side trading is not enough to assert a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.
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 that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
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 $18.33 and 200-day MA of $22.27. Today’s last price is 0.41% lower than the 52 week high of $26.72.
Earnings growth is an important factor to research when buying stocks and investors identify companies that have increased their earnings by at least 25% for the past 3 years.
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