Unit Corp. (UNT) stock falls after being downgraded at KLR Group

Unit Corp. (NYSE: UNT) shares fell on Tuesday Dec 13 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 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 KLR Group downgraded shares of Unit Corp. (NYSE: UNT) from Hold to Reduce in a research note to investors today. With a rating of Reduce on the stock, the company has a 52-week high of $28.51. The one-year price target of $24.11 is less than the opening price of $27.04, causing a number of other analysts to issue statements on the stock in recent days. Material and major changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the initial recommendation.

Unit Corp. (NYSE: UNT) shares last traded at $26.26, which is a drop of $0.69 per share or -2.56% from the previous closing price. Opening at $27.04, they varied from $26.24 and $27.41 throughout the day.

Unit Corp. (NYSE: UNT) now has a market cap of 1.35B.

Unit Corp. (NYSE: UNT) Average Daily Trading Volume

87,366 shares traded hands yesterday, lower than the norm, out of a total float 49,984,000. Investors often use upticks in trading volume to determine substantial volume growth or distribution by institutional investors, so trading volume is likely to increase in the next few days.

As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to indicate that fund managers and other professional investors are jumping in.

Institutional sponsorship commonly 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 researching thousands of stocks, so it is good corroboration to see them buying a stock you are considering.

Unit Corp. (NYSE: UNT) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

Trades for Unit Corp. (NYSE: UNT) have ranged from $3.90 – 28.51, and the stock now has a 50-day MA of $21.00 and 200-day MA of $17.23. Today’s last price is 7.89%% lower than the 52 week high of $28.51.

Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have raised their earnings by at least 25% over a 3 year period.

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