Synchrony Financial (NYSE: SYF) shares rose on Thursday Dec 1 with 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 with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Wedbush reiterated an Outperform rating on shares of Synchrony Financial (NYSE: SYF) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. Wedbush currently has a rating of Outperform on the stock. The one-year price target of $36.90 is above the opening price of $34.68, that has caused a number of other analysts to report on the stock in recent days. Looking back over the last 52 weeks, Synchrony Financial stock has a high of $35.02. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Synchrony Financial (NYSE: SYF) opened at $34.68 on Tuesday and has traded in a range between, $34.57 and $34.98, and last traded at $34.80, a jump of $0.24 or 0.69% compared to the previous closing price.
Synchrony Financial (NYSE: SYF) currently has a market cap of 28.73B.
Synchrony Financial (NYSE: SYF) Average Daily Trading Volume
497,463 shares crossed the trading desk yesterday, below the norm, out of a total float 811,771,000. Swing traders often use increases in trading volume to pinpoint heavy volume accumulation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
However, one day of high volume buy side trading is not enough to determine a trend. So market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that investigate thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
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 more impactful decisions on trades when they track the activity of professional investors.
Trades for Synchrony Financial (NYSE: SYF) have ranged from $23.25 – 35.02, and the stock now has a 50-day MA of $29.84 and 200-day MA of $28.33. Today’s last price is 0.63%% lower than the 52 week high of $35.02.
Earnings growth is a critical factor to look at when buying stocks and investors identify companies that have been successful at growing their earnings by at least 25% over the past 3 years.
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