Lonestar Resources US Inc. (NASDAQ: LONE) shares rose on Wednesday Nov 30 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.
The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.
The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.
Analysts at Wunderlich initiated coverage on Lonestar Resources US Inc. (NASDAQ: LONE) stock, rating the company at Buy. With a rating of Buy on the shares, Lonestar Resources US Inc. has a 52-week high of $16.00. A number of other analysts have issued reports on the stock recently, and the company has earned a consensus one-year price target of $13.60, higher than the opening price of $8.59. After beginning or initiating coverage, analysts and brokerage firms will subsequently re periodic updates. Changes in price targets are not uncommon.
Lonestar Resources US Inc. (NASDAQ: LONE) shares last traded at $8.47, which is a jump of $0.18 or 2.17% from the previous closing price. Opening at $8.59, they varied from $8.45 and $8.59 throughout the day.
Lonestar Resources US Inc. (NASDAQ: LONE) now has a market cap of 67.96M.
Lonestar Resources US Inc. (NASDAQ: LONE) Average Daily Trading Volume
The stock’s average daily volume is 20,459 shares out of a total float 3,497,000 and some 2,887 shares crossed the trading desk yesterday, below the average. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to determine heavy volume accumulation or dissemination by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
Lonestar Resources US Inc. (NASDAQ: LONE) 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 traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Lonestar Resources US Inc. (NASDAQ: LONE) now has a 50-day MA of $8.99 and 200-day MA of $8.38. It has traded in a 52-week range between $2.05 – 16.00 and today’s last price is 47.06%% lower than the 52 week high of $16.00.
Earnings growth is a crucial factor to consider when investing in stocks and investors identify companies that have increased their earnings by at least 25% for a 3 year period.
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.