Noble Corp. (NE) Shares Slip, Investors Watching Closely, Here is Why

Noble Corp. (NYSE: NE) shares rose on Thursday Nov 21 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, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”

The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.

Analysts at Bank of America Corp. downgraded shares of Noble Corp. (NYSE: NE) from Neutral to Underperform in a research note to investors today. With a rating of Underperform on the stock, the company has a 52-week high of $14.31. The one-year price target of $5.97 is higher than the opening price of $5.55, that has caused a number of other analysts to issue statements on the company in recent days. Downgrades occur when analysts believe that the future prospects for the security have weakened from the original recommendation, often because of a material and fundamental change in the company’s operations, future vision or industry.

Noble Corp. (NYSE: NE) shares last traded at $5.56, which is an increase of $0.08 or 1.37% compared to the previous closing price. Opening at $5.55, they varied from $5.54 and $5.74 throughout the day.

Noble Corp. (NYSE: NE) currently has a market cap of 1.35B.

Noble Corp. (NYSE: NE) Average Daily Trading Volume

1,658,843 shares crossed the trading desk yesterday, below the average, out of a total float 240,805,000. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to determine heavy volume aggregation or distribution by institutional investors.

However, a single day of heavy buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Noble Corp. (NYSE: NE) 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.

Traders are able to make make smarter trades when they follow the trading habits of professional investors.

With that in mind, Noble Corp. (NYSE: NE) now has a 50-day MA of $5.60 and 200-day MA of $7.14. It has traded in a 52-week range between $4.45 – 14.310 and today’s last price is 61.18%% lower than the 52 week high of $14.31.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more over a 3 year period.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.