Discovery Communications Inc. (DISCA) Stock Trending Up After Price Target Increase at RBC Capital Markets

Discovery Communications Inc. (NASDAQ: DISCA) shares rose on Thursday Nov 17 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.

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.

Discovery Communications Inc. (NASDAQ: DISCA) had its price target boosted by equities researchers at RBC Capital Markets from $33.00 to $35.00. The company currently has a rating of Outperform on the stock. The one-year price target of $28.14 is higher than the opening price of $27.50, causing a fair amount of other analysts to report on the company recently. Looking back over the last 52 weeks, Discovery Communications Inc. stock has a high of $31.39.

Shares of Discovery Communications Inc. (NASDAQ: DISCA) opened at $27.50 on Monday trading between $27.45 and $27.90, and last traded at $27.85, which represents a jump of $0.22 or 0.78% over the previous closing price.

Discovery Communications Inc. (NASDAQ: DISCA) currently has a market cap of 4,230.88B.

Discovery Communications Inc. (NASDAQ: DISCA) Average Daily Trading Volume

386,587 shares crossed the trading desk yesterday, below normal, out of a total float 279,958,000. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to determine substantial volume aggregation or circulation by institutional investors.

However, just a 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 an indicator 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.

These professional investors have teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Discovery Communications Inc. (NASDAQ: DISCA) 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 Discovery Communications Inc. (NASDAQ: DISCA) have ranged from $23.66 – 31.390, and the stock now has a 50-day MA of $26.40 and 200-day MA of $26.18. Today’s last price is 11.29%% below the 52 week high of $31.39.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings at least 25% or more for the past 3 years.

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