Jones Energy, Inc. (NYSE: JONE) shares rose in value on Tuesday January 17 on lighter 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 SunTrust Banks, Inc. upgraded shares of Jones Energy, Inc. (NYSE: JONE) from Hold to Buy today. With a rating of Buy on the shares, Jones Energy, Inc. has a 52-week high of $5.34. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and Jones Energy, Inc. has earned a consensus one-year price target of $6.44, above the opening price of $5.10. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Jones Energy, Inc. (NYSE: JONE) opened at $5.10 yesterday trading between $5.00 and $5.15, and last traded at $5.10, which is an increase of $0.20 over the previous closing price.
Jones Energy, Inc. (NYSE: JONE) currently has a market cap of 290.75M.
Jones Energy, Inc. (NYSE: JONE) Average Daily Trading Volume
The stock’s average daily volume is 1,164,260 shares out of a total float 37,580,000 and some 170,469 shares traded hands yesterday, 114 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
Jones Energy, Inc. (NYSE: JONE) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Jones Energy, Inc. (NYSE: JONE) now has a 50-day MA of $4.84 and 200-day MA of $3.95. It has traded in a 52-week range between $1.16 – 5.34 and today’s last price is 4.49%% lower than the 52 week high of $5.34.
Earnings growth is a crucial factor to look at when buying stocks and investors look for companies that have raised their earnings by at least 25% over 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article 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.