Phillips 66 Partners LP (PSXP) stock down despite upgrade at Zacks Investment Research

Phillips 66 Partners LP (NYSE: PSXP) shares fell back in value Tuesday Dec 13 with lower 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 Zacks Investment Research upgraded shares of Phillips 66 Partners LP (NYSE: PSXP) from Hold to Buy today. With a rating of Buy on the shares, Phillips 66 Partners LP has a 52-week high of $66.81. The one-year price target of $58.00 is above the opening price of $46.20, resulting a number of other analysts to comment on the stock recently. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.

Shares of Phillips 66 Partners LP (NYSE: PSXP) opened at $46.20 on Tuesday trading between $45.61 and $46.20, and last traded at $45.68, a drop of $0.06 per share or -0.13% compared to the previous closing price.

Phillips 66 Partners LP (NYSE: PSXP) now has a market cap of 4.72B.

Phillips 66 Partners LP (NYSE: PSXP) Average Daily Trading Volume

13,521 shares crossed the trading desk yesterday, lower than normal, out of a total float 41,332,000. Swing traders often use swings in trading volume to identify heavy volume growth or circulation by institutional investors, so trading volume is likely to increase in the next few days.

While an increase in trading for short periods will not mean much, conversely, 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 very important.

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

Institutional investors such as these have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Phillips 66 Partners LP (NYSE: PSXP) 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 can make more effective judgments on trades when they follow the activity of professional investors.

Trades for Phillips 66 Partners LP (NYSE: PSXP) have ranged from $42.47 – 66.8100, and the stock now has a 50-day MA of $44.96 and 200-day MA of $49.51. Today’s last price is 31.63%% below the 52 week high of $66.81.

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

Leave a Reply

Your email address will not be published. Required fields are marked *