PDC Energy Inc. (PDCE) shares fall following downgrade at KLR Group

PDC Energy Inc. (NASDAQ: PDCE) shares rose on Monday Dec 5 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 Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.

The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.

Shares of PDC Energy Inc. (NASDAQ: PDCE) were downgraded by analysts at KLR Group in a note to their investors today. The company currently has a rating of Accumulate on the shares. The one-year price target of $77.50 is above the opening price of $74.56, that has caused a fair amount of other analysts to comment on the stock in recent days. Looking back over the last 52 weeks, PDC Energy Inc. stock has a high of $76.75. Important and major changes in the company’s procedures, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have dropped from the initial recommendation.

PDC Energy Inc. (NASDAQ: PDCE) shares last traded at $76.31, a spike of $2.46 or 3.32% over the previous closing price. Opening at $74.56, they varied from $74.24 and $76.75 throughout the day.

PDC Energy Inc. (NASDAQ: PDCE) currently has a market cap of 4.25B.

PDC Energy Inc. (NASDAQ: PDCE) Average Daily Trading Volume

253,142 shares crossed the trading desk yesterday, below normal, out of a total float 55,125,000. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to determine heavy volume growth or dissemination by institutional investors.

However, a single day of high volume buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.

Institutional sponsorship just 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. Thus, watching their interests is a good way to make sure you are buying the right stocks.

PDC Energy Inc. (NASDAQ: PDCE) 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, PDC Energy Inc. (NASDAQ: PDCE) now has a 50-day MA of $64.34 and 200-day MA of $61.02. It has traded in a 52-week range between $42.67 – 76.750 and today’s last price is 0.58%% lower than the 52 week high of $76.75.

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

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