On Deck Capital Inc. (NYSE: ONDK) Coverage Initiated at Guggenheim

Analysts at Guggenheim initiated coverage on On Deck Capital Inc. (NYSE: ONDK) stock, rating the company at Neutral. Guggenheim currently has a rating of Neutral on the shares. The one-year price target of $8.48 is above the opening price of $6.01, resulting a number of other analysts to issue statements on the company in recent days. Looking back over the last year, On Deck Capital Inc. stock has a high of $12.85. Analysts and brokerage firms will subsequently publish periodic updates after beginning or initiating coverage. Price changes targets are not uncommon.

U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.

The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.

The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.

The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.

Yesterday On Deck Capital Inc. (NYSE: ONDK) shares last traded at $6.02, a spike of $0.07 compared to the previous closing price. Opening at $6.01, they ranged from $5.96 and $6.07 throughout the day.

On Deck Capital Inc. (NYSE: ONDK) now has a market cap of 426.96M.

374,365 shares crossed the trading desk yesterday, 76 percent below the norm, out of a total float 30,519,000. Momentum traders often use upticks in trading volume to pinpoint substantial volume aggregation or circulation by institutional investors, so look for trading volume to pick up in the coming days.

While an increase in trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors have substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you’re considering.

By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

With that in mind, On Deck Capital Inc. (NYSE: ONDK) now has a 50-day MA of $5.96 and 200-day MA of $6.06. It has traded in a 52-week range between $4.20 – 12.85 and today’s last price is 0.53% lower than the 52 week high of $12.85.

Earnings growth is a critical factor to consider when investing in stocks and investors watch for companies that have grown their earnings by at least 25% for the past 3 years.

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