Synchrony Financial (NYSE: SYF) shares fell on Tuesday February 14 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.
The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.
Analysts at Jefferies Group LLC reiterated a Buy rating on shares of Synchrony Financial (NYSE: SYF) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Buy on the shares, the company has a 52-week high of $38.06. The one-year price target of $42.91 is above the opening price of $36.63, that has caused a fair amount of other analysts to issue statements on the company recently. Typically, after analysts publish a “reiterated rating” report on a stock, they will later issue recurring revisions, such as a price target change.
Shares of Synchrony Financial (NYSE: SYF) opened at $36.63 yesterday and traded in a range between, $36.54 and $36.75, and last traded at $36.61, a drop of $0.04 compared to the previous closing price.
Synchrony Financial (NYSE: SYF) currently has a market cap of 29.93B.
Synchrony Financial (NYSE: SYF) Average Daily Trading Volume
The stock’s average daily volume is 6,353,470 shares out of a total float 800,022,000 and some 225,217 shares traded hands yesterday, 4 percent lower than normal. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal 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 instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
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.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Synchrony Financial (NYSE: SYF) now has a 50-day MA of $36.35 and 200-day MA of $31.39. It has traded in a 52-week range between $23.25 – 38.06 and today’s last price is 3.80%% lower than the 52 week high of $38.06.
Earnings growth is a critical factor to research when investing in stocks and investors seek companies that have been successful at growing their earnings at least 25% or more for the past 3 years.
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