Earthstone Energy Inc (ESTE) Stock Trending Up After Price Target Increase at FBR & Co

Earthstone Energy Inc (AMEX: ESTE) shares rose on Monday Dec 19 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.

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.

Earthstone Energy Inc (AMEX: ESTE) had its price target raised by equities researchers at FBR & Co from $17.00 to $18.00. With a rating of Outperform on the shares, Earthstone Energy Inc has a 52-week high of $15.93. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $18.10, higher than the opening price of $13.94.

Shares of Earthstone Energy Inc (AMEX: ESTE) opened at $13.94 on Tuesday trading between $13.89 and $14.12, and last traded at $14.00, an increase of $0.35 or 2.56% compared to the previous closing price.

Earthstone Energy Inc (AMEX: ESTE) now has a market cap of 311.82M.

Earthstone Energy Inc (AMEX: ESTE) Average Daily Trading Volume

The stock’s average daily volume is 117,406 shares out of a total float 9,655,000 and some 11,922 shares crossed the trading desk yesterday, below the average. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to determine heavy volume accumulation or distribution by institutional investors.

However, one day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

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

Professional investors such as these retain teams of analysts that investigate thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Earthstone Energy Inc (AMEX: ESTE) 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 winning trades.

Trades for Earthstone Energy Inc (AMEX: ESTE) have ranged from $7.67 – 15.93, and the stock now has a 50-day MA of $12.64 and 200-day MA of $10.83. Today’s last price is 12.12%% below the 52 week high of $15.93.

Earnings growth is an important factor to research when buying stocks and investors seek companies that have increased their earnings at least 25% or more for a 3 year period.

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