Tenneco Inc. (NYSE: TEN) shares rose on Wednesday Nov 30 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.
The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.
The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.
Analysts at Jefferies Group initiated coverage on Tenneco Inc. (NYSE: TEN) stock, rating the company at Hold. Jefferies Group currently has a rating of Hold on the shares. A number of other analysts have commented on the stock in recent days, and the company has earned a consensus one-year price target of $62.56, higher than the opening price of $58.98, a difference of 10.55 percent. Tenneco Inc. stock has a 52-week high of $60.89. Changes in price targets are not unusual as analysts and brokerage firms will issue periodic updates after initiating coverage,.
Shares of Tenneco Inc. (NYSE: TEN) opened at $58.98 on Tuesday and has traded in a range between, $58.98 and $59.96, and last traded at $59.31, a jump of $0.47 or 0.80% compared to the previous closing price.
Tenneco Inc. (NYSE: TEN) now has a market cap of 3.26B.
Tenneco Inc. (NYSE: TEN) Average Daily Trading Volume
25,434 shares crossed the trading desk yesterday, below the norm, out of a total float 53,677,000. Investors often use swings in trading volume to determine heavy volume growth or distribution by institutional investors, so look for trading volume to pick up in the coming days.
As with all possible breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
Tenneco Inc. (NYSE: TEN) 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 marking the activity of these professional investors and how they affect moving averages, traders can make educated trades.
Trades for Tenneco Inc. (NYSE: TEN) have ranged from $34.45 – 60.89, and the stock now has a 50-day MA of $55.57 and 200-day MA of $54.37. Today’s last price is 2.59%% under the 52 week high of $60.89.
Indeed, earnings growth is among the most crucial 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 3 consecutive years.
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