RSP Permian Inc. (RSPP) Stock Up After Upgrade at Morgan Stanley

RSP Permian Inc. (NYSE: RSPP) shares rose in value 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 upgraded 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 Morgan Stanley upgraded shares of RSP Permian Inc. (NYSE: RSPP) from Equal Weight to Overweight today. The company currently has a rating of Overweight on the stock. A number of other analysts have commented on the stock in recent days, and RSP Permian Inc. has earned a consensus one-year price target of $50.59, above the opening price of $45.76, a difference of 11.10 percent. RSP Permian Inc. stock has a 52-week high of $46.44. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.

RSP Permian Inc. (NYSE: RSPP) shares last traded at $45.59, which represents an increase of $1.23 or 2.77% over the previous closing price. Opening at $45.76, they varied from $45.41 and $46.14 throughout the day.

RSP Permian Inc. (NYSE: RSPP) currently has a market cap of 5.79B.

RSP Permian Inc. (NYSE: RSPP) Average Daily Trading Volume

191,248 shares traded hands yesterday, lower than normal, out of a total float 104,891,000. Trading volume is likely to increase in the next few days as swing traders often use upticks in trading volume to determine heavy volume growth or distribution by institutional investors.

While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.

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

These professional investors retain teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

RSP Permian Inc. (NYSE: RSPP) 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective judgments on trades.

Trades for RSP Permian Inc. (NYSE: RSPP) have ranged from $16.74 – 46.44, and the stock now has a 50-day MA of $40.09 and 200-day MA of $37.28. Today’s last price is 1.83%% lower than the 52 week high of $46.44.

Earnings growth is a crucial factor to consider when buying stocks and investors watch for companies that have raised their earnings by at least 25% for a 3 year period.

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