Synchrony Financial (SYF) stock down despite upgrade at Zacks Investment Research

Synchrony Financial (NYSE: SYF) shares fell back in value Wednesday Dec 14 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve’s latest decision regarding monetary policy.

The Dow Jones industrial average traded 35 points lower, with Goldman Sachs contributing the most losses. The S&P 500 traded 0.1 percent lower, with financials leading decliners. The Nasdaq composite, meanwhile, held flat.

Analysts at Zacks Investment Research upgraded shares of Synchrony Financial (NYSE: SYF) from Hold to Buy today. Zacks Investment Research currently has a rating of Buy on the shares. The one-year price target of $37.81 is above the opening price of $35.97, resulting a number of other analysts to report on the stock recently. Looking back over the last 52 weeks, Synchrony Financial stock has a high of $36.77. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.

Shares of Synchrony Financial (NYSE: SYF) opened at $35.97 on Tuesday trading between $35.61 and $36.14, and last traded at $36.00, a dip of $0.28 per share or -0.76% compared to the previous closing price.

Synchrony Financial (NYSE: SYF) currently has a market cap of 29.71B.

Synchrony Financial (NYSE: SYF) Average Daily Trading Volume

The stock’s average daily volume is 7,622,960 shares out of a total float 811,771,000 and some 656,075 shares crossed the trading desk yesterday, below the average. Investors often use swings in trading volume to identify large volume accumulation or circulation by institutional investors, so trading volume is likely to increase in the next few days.

While an increase in trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

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

These instituitional investors have teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Synchrony Financial (NYSE: SYF) 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 can make well planned trades when they follow the activity of professional investors.

With that in mind, Synchrony Financial (NYSE: SYF) now has a 50-day MA of $32.50 and 200-day MA of $28.77. It has traded in a 52-week range between $23.25 – 36.770 and today’s last price is 2.11%% lower than the 52 week high of $36.77.

Earnings growth is a critical factor to research when buying stocks and investors look for companies that have grown their earnings at least 25% or more for 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.

Leave a Reply

Your email address will not be published. Required fields are marked *