Patterson-UTI Energy, Inc. (NASDAQ: PTEN) shares rose in value on Tuesday February 14 on slower 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 slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Analysts at Guggenheim upgraded shares of Patterson-UTI Energy, Inc. (NASDAQ: PTEN) from Neutral to Buy today. The company currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have spoken on the stock recently, and the company has earned a consensus one-year price target of $29.56, higher than the opening price of $28.92, a difference of 10.16 percent. Patterson-UTI Energy, Inc. stock has a 52-week high of $29.56. Share prices sometimes get a boost to the upside when analysts upgrade a stock.
Yesterday Patterson-UTI Energy, Inc. (NASDAQ: PTEN) shares last traded at $29.09, which represents an increase of $0.47 from the previous closing price. Opening at $28.92, they fluctuated from $28.83 and $29.25 throughout the day.
Patterson-UTI Energy, Inc. (NASDAQ: PTEN) currently has a market cap of 4.27B.
Patterson-UTI Energy, Inc. (NASDAQ: PTEN) Average Daily Trading Volume
421,073 shares traded hands yesterday, 44 percent lower than the average, out of a total float 143,598,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Patterson-UTI Energy, Inc. (NASDAQ: PTEN) 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, Patterson-UTI Energy, Inc. (NASDAQ: PTEN) now has a 50-day MA of $27.79 and 200-day MA of $23.78. It has traded in a 52-week range between $12.80 – 29.56 and today’s last price is 1.57%% lower than the 52 week high of $29.56.
Earnings growth is a crucial factor to look at when investing in stocks and investors identify companies that have been successful at growing their earnings at least 25% or more for a 3 year period.
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