Enerplus Corp. (NYSE: ERF) shares rose in value Tuesday Dec 13 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, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Analysts at Scotiabank upgraded shares of Enerplus Corp. (NYSE: ERF) from Sector Perform to Outperform today. The company currently has a rating of Outperform on the stock. The one-year price target of $10.09 is higher than the opening price of $9.76, resulting a number of other analysts to issue statements on the company recently. Looking back over the last 52 weeks, Enerplus Corp. stock has a high of $10.33. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Enerplus Corp. (NYSE: ERF) shares last traded at $9.80, which represents an increase of $0.31 or 3.27% compared to the previous closing price. Opening at $9.76, they fluctuated from $9.73 and $9.94 throughout the day.
Enerplus Corp. (NYSE: ERF) now has a market cap of 2.36B.
Enerplus Corp. (NYSE: ERF) Average Daily Trading Volume
520,295 shares crossed the trading desk yesterday, below the average, out of a total float 224,457,000. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to determine heavy volume aggregation or distribution by institutional investors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% greater than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Enerplus Corp. (NYSE: ERF) 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.
With that in mind, Enerplus Corp. (NYSE: ERF) now has a 50-day MA of $7.62 and 200-day MA of $6.83. It has traded in a 52-week range between $1.84 – 10.33 and today’s last price is 5.13%% lower than the 52 week high of $10.33.
Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have been successful at growing their earnings by at least 25% over the past 3 years.
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.