Rice’s moving averages
On January 29, 2016, RICE stock crossed its 50-day moving average (or DMA) for the first time in 2016. However, it wasn’t able to sustain and fell below its 50-DMA only to cross it again on March 2, 2016. Currently, RICE continues to trade above its 50-DMA. On August 16, 2016, RICE stock was trading ~15% above its 50-DMA.
RICE also broke above its 200-DMA in early April and continues to move higher. The fact that its 50-DMA has crossed above the 200-DMA is a very bullish sign.
As of August 16, 2016, Rice stock was trading ~68% above its 200-DMA. Year-over-year, Rice stock has increased by 27%. Meanwhile, peers Noble Energy (NBL) and Antero Resources (AR) have increased 1.1% and 1.8%, respectively. All these companies combined make up 3.9% of the iShares US Oil & Gas Exploration & Production ETF (IEO).
Rice’s stock price recovery
As you can see in the above graph, RICE stock has recovered significantly in 2016, crossing its year-ago levels. In 2016, RICE has increased ~138% year-to-date. RICE’s aggressive steps to counter low prices and the turnaround in natural gas prices have helped this increase.
Next, we’ll take a look at Rice Energy’s key management objectives.