BP PLC (BP) Stock Up After Upgrade at Independent Research GmbH

BP PLC (NYSE: BP) shares rose in value Thursday Dec 1 with lighter 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 Independent Research GmbH upgraded shares of BP PLC (NYSE: BP) from Hold to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $37.29 is higher than the opening price of $35.69, that has caused a number of other analysts to comment on the stock recently. Looking back over the last year, BP PLC stock has a high of $37.28. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.

Shares of BP PLC (NYSE: BP) opened at $35.69 on Tuesday trading between $35.50 and $35.71, and last traded at $35.58, a jump of $0.57 or 1.63% compared to the previous closing price.

BP PLC (NYSE: BP) now has a market cap of 112.15B.

BP PLC (NYSE: BP) Average Daily Trading Volume

The stock’s average daily volume is 5,435,230 shares out of a total float 3,046,819,000 and some 1,544,888 shares traded hands yesterday, lower than the average. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to determine substantial volume aggregation or distribution by institutional investors.

While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

BP PLC (NYSE: BP) 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 investors to make those trends work in their favor and increase the number of successful trades.

With that in mind, BP PLC (NYSE: BP) now has a 50-day MA of $34.77 and 200-day MA of $34.13. It has traded in a 52-week range between $27.01 – 37.280 and today’s last price is 4.56%% lower than the 52 week high of $37.28.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% for 3 consecutive years.

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