Sunoco Logistics Partners L.P. (NYSE: SXL) shares rose in value Friday Dec 2 with lower 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 edged lower on Friday, with major indexes on track for a weekly decline.
The Dow Jones Industrial Average DJIA, -0.14% fell 23 points, or 0.1%, to 19,169, while the S&P 500 SPX, +0.09% lost 1.2 point to 2,190, a move of less than 0.1%. The Nasdaq Composite COMP, -0.15% fell 5.3 points, or 0.1%, to 5,247.
Analysts at RBC Capital Markets upgraded shares of Sunoco Logistics Partners L.P. (NYSE: SXL) from Sector Perform to Outperform today. With a rating of Outperform on the stock, Sunoco Logistics Partners L.P. has a 52-week high of $31.49. As a means of comparison, a number of other analysts have issued reports on the company recently, and Sunoco Logistics Partners L.P. has earned a consensus one-year price target of $31.35, above the opening price of $22.96. Typically, after analysts publish an upgrade report on a stock, they will subsequently issue sporadic updates, usually followed by a price target change.
Shares of Sunoco Logistics Partners L.P. (NYSE: SXL) opened at $22.96 on Tuesday trading between $22.50 and $22.99, and last traded at $22.80, a jump of $0.28 or 1.23% over the previous closing price.
Sunoco Logistics Partners L.P. (NYSE: SXL) now has a market cap of 7.56B.
Sunoco Logistics Partners L.P. (NYSE: SXL) Average Daily Trading Volume
239,647 shares traded hands yesterday, lower than normal, out of a total float 254,211,000. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to determine heavy volume growth or dissemination by institutional investors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are considering.
Sunoco Logistics Partners L.P. (NYSE: SXL) 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 how they affect moving averages, traders can make smarter trades.
With that in mind, Sunoco Logistics Partners L.P. (NYSE: SXL) now has a 50-day MA of $25.72 and 200-day MA of $27.93. It has traded in a 52-week range between $15.43 – 31.4900 and today’s last price is 27.61%% lower than the 52 week high of $31.49.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.
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