Analysts at Evercore ISI upgraded shares of Diamond Offshore Drilling Inc. (NYSE: DO) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $26.72. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has secured a consensus one-year price target of $18.19, above the opening price of $14.95. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.
The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.
The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.
Yesterday Diamond Offshore Drilling Inc. (NYSE: DO) shares last traded at $15.26, which represents a spike of $0.32 over the previous closing price. Opening at $14.95, they fluctuated from $14.68 and $15.52 throughout the day.
Diamond Offshore Drilling Inc. (NYSE: DO) currently has a market cap of 2.09B.
The stock’s average daily volume is 2,772,680 shares out of a total float 64,000,000 and some 3,633,368 shares traded hands yesterday, 57 percent above the norm. Considerable volume aggregation by institutional investors may be on the horizon as the combination of substantial gains in trading volume and price appreciation can be determining components.
While an increase in trading for one day 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 indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.
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 teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
By marking the activity of these professional investors and how they affect moving averages, traders can make well planned trades.
With that in mind, Diamond Offshore Drilling Inc. (NYSE: DO) now has a 50-day MA of $18.47 and 200-day MA of $22.31. It has traded in a 52-week range between $14.18 – 26.72 and today’s last price is 0.43% lower than the 52 week high of $26.72.
Earnings growth is an important factor to look at when investing in stocks and investors look for companies that have raised their earnings at least 25% or more for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.