Marathon Oil Corp. (NYSE: MRO) shares slid back in value Wednesday Dec 14 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.
The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.
Analysts at Argus upgraded shares of Marathon Oil Corp. (NYSE: MRO) from Hold to Buy today. The company currently has a rating of Buy on the stock. A number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $19.04, above the opening price of $18.59. Marathon Oil Corp. stock has a 52-week high of $19.28. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Marathon Oil Corp. (NYSE: MRO) shares last traded at $18.55, which represents a decrease of $0.25 per share or -1.33% compared to the previous closing price. Opening at $18.59, they varied from $18.52 and $18.74 throughout the day.
Marathon Oil Corp. (NYSE: MRO) currently has a market cap of 15.72B.
Marathon Oil Corp. (NYSE: MRO) Average Daily Trading Volume
1,362,919 shares crossed the trading desk yesterday, below the average, out of a total float 846,008,000. Investors often use swings in trading volume to pinpoint heavy volume accumulation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
However, a single day of heavy buy side trading is not enough to determine a trend. So market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
Marathon Oil Corp. (NYSE: MRO) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Marathon Oil Corp. (NYSE: MRO) now has a 50-day MA of $15.82 and 200-day MA of $14.98. It has traded in a 52-week range between $6.52 – 19.28 and today’s last price is 3.79%% lower than the 52 week high of $19.28.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% over 3 consecutive years.
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