Sibanye Gold Ltd. (SBGL) Stock Up After Upgrade at Zacks Investment Research

Sibanye Gold Ltd. (NYSE: SBGL) shares rose in value Tuesday Dec 13 with lighter 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 Sibanye Gold Ltd. (NYSE: SBGL) from Sell to Hold today. The company currently has a rating of Hold on the shares. The one-year price target of $14.60 is above the opening price of $7.39, that has caused a number of other analysts to issue statements on the stock in recent days. Looking back over the last year, Sibanye Gold Ltd. stock has a high of $20.97. Usually, after analysts publish an upgrade report on a stock, they will later issue other revisions, usually followed by a price target change.

Shares of Sibanye Gold Ltd. (NYSE: SBGL) opened at $7.39 on Tuesday trading between $7.25 and $7.44, and last traded at $7.29, which is a jump of $0.17 or 2.32% over the previous closing price.

Sibanye Gold Ltd. (NYSE: SBGL) currently has a market cap of 1.68B.

Sibanye Gold Ltd. (NYSE: SBGL) Average Daily Trading Volume

497,518 shares crossed the trading desk yesterday, below the average, out of a total float 227,400,000. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to pinpoint large volume aggregation or distribution by institutional investors.

While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.

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

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

Sibanye Gold Ltd. (NYSE: SBGL) 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 successful trades.

Trades for Sibanye Gold Ltd. (NYSE: SBGL) have ranged from $5.50 – 20.970, and the stock now has a 50-day MA of $9.80 and 200-day MA of $13.77. Today’s last price is 65.26%% lower than the 52 week high of $20.97.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more for the past 3 years.

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