ENSCO PLC (NYSE: ESV) shares rose in value on Tuesday January 17 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade, the Dow Jones Industrial Average was 47 points lower, or 0.24% to 19838, the S&P 500 fell 7 points, or 0.29% to 2267, while the Nasdaq was down 19 points, or 0.35% to 5554.
Analysts at Capital One Financial Corporation upgraded shares of ENSCO PLC (NYSE: ESV) from Equal Weight to Overweight today. With a rating of Overweight on the shares, the company has a 52-week high of $13.04. The one-year price target of $9.76 is a decrease compared to the opening price of $11.60, that has caused a number of other analysts to comment on the company recently. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Yesterday ENSCO PLC (NYSE: ESV) shares last traded at $11.36, which represents an increase of $0.08 from the previous closing price. Opening at $11.60, they ranged from $11.32 and $11.60 throughout the day.
ENSCO PLC (NYSE: ESV) currently has a market cap of 3.42B.
ENSCO PLC (NYSE: ESV) Average Daily Trading Volume
810,166 shares crossed the trading desk yesterday, 88 percent below the norm, out of a total float 299,792,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal 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.
Institutional investors such as these retain teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
ENSCO PLC (NYSE: ESV) 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.
Trades for ENSCO PLC (NYSE: ESV) have ranged from $6.50 – 13.04, and the stock now has a 50-day MA of $10.31 and 200-day MA of $8.92. Today’s last price is 12.88%% below the 52 week high of $13.04.
Earnings growth is a crucial factor to consider when investing in stocks and investors seek companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.
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