Transocean Ltd. (NYSE: RIG) shares rose in value Thursday Dec 22 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 opened mostly flat on Thursday. The Dow Jones Industrial Average DJIA, -0.15% fell 15 points to 19,928, a drop of less than 0.1%. The S&P 500 SPX, -0.22% fell 1 point, or 0.05%, to 2,264. The Nasdaq Composite Index COMP, -0.23% fell 1 point to 5,470.21, essentially unchanged on the day.
Analysts at Zacks Investment Research upgraded shares of Transocean Ltd. (NYSE: RIG) from Hold to Buy today. With a rating of Buy on the shares, Transocean Ltd. has a 52-week high of $16.66. The one-year price target of $10.90 is lower than the opening price of $14.92, causing a fair amount of other analysts to issue statements on the stock recently. Usually, after analysts give an upgrade report on a stock, they will subsequently issue recurring updates, such as a price target change.
Shares of Transocean Ltd. (NYSE: RIG) opened at $14.92 on Tuesday trading between $14.77 and $15.00, and last traded at $14.88, which represents a spike of $0.04 or 0.27% over the previous closing price.
Transocean Ltd. (NYSE: RIG) now has a market cap of 5.44B.
Transocean Ltd. (NYSE: RIG) Average Daily Trading Volume
715,938 shares traded hands yesterday, lower than the average, out of a total float 365,278,000. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to pinpoint heavy volume aggregation or distribution by institutional investors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to show 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 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.
Transocean Ltd. (NYSE: RIG) 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 winning trades.
Trades for Transocean Ltd. (NYSE: RIG) have ranged from $7.66 – 16.66, and the stock now has a 50-day MA of $12.46 and 200-day MA of $11.06. Today’s last price is 10.68%% below the 52 week high of $16.66.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over a 3 year period.
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