Targa Resources Corp (NYSE: TRGP) shares rose on Thursday Dec 1 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, 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 Stifel Nicolaus downgraded shares of Targa Resources Corp (NYSE: TRGP) from Buy to Hold in a research note to investors today. With a rating of Hold on the shares, Targa Resources Corp has a 52-week high of $54.10. The one-year price target of $51.06 is a decrease compared to the opening price of $54.01, causing a fair amount of other analysts to report on the company recently. Considerable and major changes in the company’s actions, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the original recommendation.
Shares of Targa Resources Corp (NYSE: TRGP) opened at $54.01 on Tuesday and has traded in a range between, $53.22 and $54.10, and last traded at $53.56, which represents a spike of $0.27 or 0.51% from the previous closing price.
Targa Resources Corp (NYSE: TRGP) now has a market cap of 9.69B.
Targa Resources Corp (NYSE: TRGP) Average Daily Trading Volume
The stock’s average daily volume is 2,021,430 shares out of a total float 176,279,000 and some 366,678 shares traded hands yesterday, below normal. Swing traders often use increases in trading volume to determine large volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than 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.
These instituitional investors retain substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
Targa Resources Corp (NYSE: TRGP) 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 influence—it allows for traders to make more impactful decisions on trades.
With that in mind, Targa Resources Corp (NYSE: TRGP) now has a 50-day MA of $48.08 and 200-day MA of $44.52. It has traded in a 52-week range between $14.55 – 54.10 and today’s last price is 1.00%% lower than the 52 week high of $54.10.
Earnings growth is a critical factor to research when investing in stocks and investors seek companies that have increased their earnings by at least 25% for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.