Oneok Inc. (OKE) Stock Moves Down and Here’s Why

Oneok Inc. (NYSE: OKE) shares rose on Tuesday Dec 13 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.

The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.

Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting

Shares of Oneok Inc. (NYSE: OKE) were downgraded by analysts at Barclays PLC in a note to their investors today. With a rating of Equal Weight on the shares, Oneok Inc. has a 52-week high of $58.80. The one-year price target of $48.47 is a decrease compared to the opening price of $57.18, causing a number of other analysts to comment on the company in recent days. Downgrades occur when analysts believe that the future prospects for the security have weakened from the original recommendation, usually because of a material and fundamental digression in the company’s actions, future direction or industry.

Shares of Oneok Inc. (NYSE: OKE) opened at $57.18 on Tuesday trading between $56.85 and $57.58, and last traded at $57.27, which is an increase of $0.06 or 0.10% compared to the previous closing price.

Oneok Inc. (NYSE: OKE) now has a market cap of 12.06B.

Oneok Inc. (NYSE: OKE) Average Daily Trading Volume

The stock’s average daily volume is 1,880,620 shares out of a total float 208,682,000 and some 292,050 shares traded hands yesterday, below the norm. Trading volume is likely to increase in the next few days as investors often use increases in trading volume to identify substantial volume accumulation or distribution by institutional investors.

However, just a day of significant buy side trading is not enough to affirm a trend. As such, market traders will continue to look for institutional sponsorship as an indicator 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 professional investors have teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Oneok Inc. (NYSE: OKE) 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 winning trades.

With that in mind, Oneok Inc. (NYSE: OKE) now has a 50-day MA of $51.39 and 200-day MA of $48.32. It has traded in a 52-week range between $18.84 – 58.80 and today’s last price is 2.60%% lower than the 52 week high of $58.80.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more for the past 3 years.

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