Valero Energy Corp. (NYSE: VLO) shares fell on Monday Dec 19 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, the Dow Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Shares of Valero Energy Corp. (NYSE: VLO) were downgraded by analysts at Vetr Inc. in a note to their investors today. With a rating of Sell on the shares, Valero Energy Corp. has a 52-week high of $72.49. The one-year price target of $69.56 is higher than the opening price of $68.00, resulting a number of other analysts to issue statements on the stock in recent days. Downgrades occur when analysts believe that the future prospects for the security have dropped from the original recommendation, often caused by a material and integral change in the company’s operations, future vision or industry.
Valero Energy Corp. (NYSE: VLO) shares last traded at $67.63, which is a dip of $0.37 per share or -0.54% compared to the previous closing price. Opening at $68.00, they varied from $67.33 and $68.07 throughout the day.
Valero Energy Corp. (NYSE: VLO) currently has a market cap of 30.61B.
Valero Energy Corp. (NYSE: VLO) Average Daily Trading Volume
The stock’s average daily volume is 5,879,110 shares out of a total float 451,306,000 and some 340,460 shares crossed the trading desk yesterday, below normal. Momentum traders often use increases in trading volume to pinpoint substantial volume aggregation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Valero Energy Corp. (NYSE: VLO) 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 well planned trades when they follow the trading habits of professional investors.
Trades for Valero Energy Corp. (NYSE: VLO) have ranged from $46.88 – 72.49, and the stock now has a 50-day MA of $63.22 and 200-day MA of $55.99. Today’s last price is 6.70%% under the 52 week high of $72.49.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have grown 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.