Resolute Energy Corp. (NYSE: REN) shares rose on Monday Dec 5 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Vetr Inc. downgraded shares of Resolute Energy Corp. (NYSE: REN) from Buy to Hold in a research note to investors today. With a rating of Hold on the stock, the company has a 52-week high of $35.38. The one-year price target of $38.29 is above the opening price of $34.21, that has caused a number of other analysts to report on the stock recently. Downgrades occur when analysts feel that the future prospects for the security have dropped from the initial recommendation, often because of a considerable and crucial change in the company’s operations, future outlook or industry.
Shares of Resolute Energy Corp. (NYSE: REN) opened at $34.21 on Tuesday trading between $33.81 and $34.74, and last traded at $34.74, a jump of $0.84 or 2.48% compared to the previous closing price.
Resolute Energy Corp. (NYSE: REN) currently has a market cap of 530.83M.
Resolute Energy Corp. (NYSE: REN) Average Daily Trading Volume
The stock’s average daily volume is 1,206,150 shares out of a total float 11,243,000 and some 120,677 shares traded hands yesterday, lower than the norm. Trading volume is likely to increase in the next few days as swing traders often use upticks in trading volume to pinpoint substantial volume growth or distribution by institutional investors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% higher than normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Resolute Energy Corp. (NYSE: REN) 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 are able to make make smarter trades when they follow the activity of professional investors.
With that in mind, Resolute Energy Corp. (NYSE: REN) now has a 50-day MA of $29.55 and 200-day MA of $16.55. It has traded in a 52-week range between $2.25 – 35.38 and today’s last price is 1.81%% lower than the 52 week high of $35.38.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over 3 consecutive years.
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