Rice Energy Inc. (NYSE: RICE) shares rose in value Monday Nov 21 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, stocks were set to open up this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Analysts at Deutsche Bank AG upgraded shares of Rice Energy Inc. (NYSE: RICE) from Hold to Buy today. With a rating of Buy on the shares, Rice Energy Inc. has a 52-week high of $29.36. A number of other analysts have commented on the company in recent days, and Rice Energy Inc. has earned a consensus one-year price target of $32.14, above the opening price of $24.82. Stock prices often shift to the upside on recommendations and new price targets of professional brokerage firms.
Rice Energy Inc. (NYSE: RICE) shares last traded at $24.75, an increase of $0.74 or 3.08% over the previous closing price. Opening at $24.82, they fluctuated from $24.72 and $25.24 throughout the day.
Rice Energy Inc. (NYSE: RICE) currently has a market cap of 5.01B.
Rice Energy Inc. (NYSE: RICE) Average Daily Trading Volume
395,639 shares traded hands yesterday, below the average, out of a total float 150,968,000. Swing traders often use swings in trading volume to pinpoint heavy volume growth or circulation by institutional investors, so look for trading volume to pick up in the coming days.
While an increase in trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.
Rice Energy Inc. (NYSE: RICE) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
Trades for Rice Energy Inc. (NYSE: RICE) have ranged from $7.92 – 29.36, and the stock now has a 50-day MA of $24.35 and 200-day MA of $23.28. Today’s last price is 15.70%% lower than the 52 week high of $29.36.
Earnings growth is an important factor to look at when buying stocks and investors seek companies that have grown their earnings by at least 25% over a 3 year period.
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