Sibanye Gold Ltd. (NYSE: SBGL) shares slid back in value Thursday Dec 1 with slower 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. stocks opened with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Zacks Investment Research upgraded shares of Sibanye Gold Ltd. (NYSE: SBGL) from Sell to Hold today. With a rating of Hold on the stock, Sibanye Gold Ltd. has a 52-week high of $20.97. The one-year price target of $14.60 is above the opening price of $8.01, causing a fair amount of other analysts to issue statements on the company in recent days. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Sibanye Gold Ltd. (NYSE: SBGL) shares last traded at $8.01, which represents a drop of $0.30 per share or -3.61% compared to the previous closing price. Opening at $8.01, they fluctuated from $7.95 and $8.12 throughout the day.
Sibanye Gold Ltd. (NYSE: SBGL) now has a market cap of 1.85B.
Sibanye Gold Ltd. (NYSE: SBGL) Average Daily Trading Volume
288,804 shares crossed the trading desk yesterday, below the average, out of a total float 188,081,000. Swing traders often use upticks in trading volume to pinpoint substantial volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
However, one day of significant buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Sibanye Gold Ltd. (NYSE: SBGL) 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.
Traders are able to make make more useful choices on trades when they track the trading habits of professional investors.
With that in mind, Sibanye Gold Ltd. (NYSE: SBGL) now has a 50-day MA of $10.81 and 200-day MA of $14.09. It has traded in a 52-week range between $5.30 – 20.97 and today’s last price is 61.80%% lower than the 52 week high of $20.97.
Earnings growth is a critical factor to consider when buying stocks and investors look for companies that have increased their earnings at least 25% or more for 3 consecutive years.
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