Discover Financial Services (NYSE: DFS) shares rose in value Monday Nov 14 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile as investors continued to try and decipher policy proposals of President-elect Donald Trump’s administration, the Dow Jones Industrial Average DJIA, +0.11% rose 21.03 points, or 0.1%, to finish at 18,868.69, its third straight record close.
The blue-chip index had also touched a historic high of 18,934.05 during the session.
The S&P 500 index SPX, -0.01% fell 0.25 points to end at 2,164.20, and the Nasdaq Composite COMP, -0.36% dropped 18.72 points, or 0.4%, to close at 5,218.40.
Analysts at Zacks Investment Research upgraded shares of Discover Financial Services (NYSE: DFS) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $67.18. As a means of comparison, a number of other analysts have issued reports on the company recently, and Discover Financial Services has secured a consensus one-year price target of $65.32, higher than the opening price of $65.00. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Discover Financial Services (NYSE: DFS) shares last traded at $66.70, which is a spike of $2.13 or 3.30% compared to the previous closing price. Opening at $65.00, they fluctuated from $64.98 and $67.18 throughout the day.
Discover Financial Services (NYSE: DFS) now has a market cap of 26.31B.
Discover Financial Services (NYSE: DFS) Average Daily Trading Volume
The stock’s average daily volume is 2,708,370 shares out of a total float 390,383,000 and some 5,897,707 shares crossed the trading desk yesterday, above the norm. Excessive volume aggregation by institutional investors may be on the horizon as the combination of substantial gains in trading volume and price inflation can be deciding factors.
As with all potential breakouts, investors watch for volume to be at least 40%-50% higher than normal on the breakout to demonstrate 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.
Institutional investors such as these have substantial teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.
Discover Financial Services (NYSE: DFS) 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 following the activity of these professional investors and how they influence moving averages,it allows for traders to make more impactful choices on trades.
Trades for Discover Financial Services (NYSE: DFS) have ranged from $42.86 – 67.18, and the stock now has a 50-day MA of $56.75 and 200-day MA of $56.41. Today’s last price is 0.71%% lower than the 52 week high of $67.18.
Earnings growth is an important factor to consider when investing in stocks and investors identify companies that have increased their earnings by at least 25% over a 3 year period.
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