Rice Energy Inc. (NYSE: RICE) shares rose in value on Monday February 6 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Investors turned cautious in early trading today with the Dow Jones Industrial Average DJIA, was off by 17 points, or 0.1%, to 20.054.
The S&P 500 SPX, -0.14% eased 5 points, or 0.2%, to 2,293, with seven of the 11 main sectors trading lower. Nearly all main sectors were trading lower, while materials and consumer staples led the losses.
The Nasdaq Composite COMP, -0.14% slipped 10 points, or 0.2%, at 5,144.
Analysts at Seaport Global Securities upgraded shares of Rice Energy Inc. (NYSE: RICE) from Neutral to Buy today. With a rating of Buy on the stock, Rice Energy Inc. has a 52-week high of $29.36. The one-year price target of $30.80 is higher than the opening price of $21.38, that has caused a fair amount of other analysts to report on the company in recent days. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of Rice Energy Inc. (NYSE: RICE) opened at $21.38 yesterday trading between $21.24 and $21.80, and last traded at $21.51, a jump of $0.49 from the previous closing price.
Rice Energy Inc. (NYSE: RICE) now has a market cap of 4.36B.
Rice Energy Inc. (NYSE: RICE) Average Daily Trading Volume
The stock’s average daily volume is 3,989,180 shares out of a total float 178,574,000 and some 354,752 shares crossed the trading desk yesterday, 20 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much 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.
Professional investors such as these have substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Rice Energy Inc. (NYSE: RICE) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Rice Energy Inc. (NYSE: RICE) now has a 50-day MA of $20.97 and 200-day MA of $23.91. It has traded in a 52-week range between $8.06 – 29.36 and today’s last price is 26.74%% lower than the 52 week high of $29.36.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings at least 25% or more over the past 3 years.
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