Discover Financial Services (NYSE: DFS) shares rose in value Thursday Dec 15 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Bank of America Corp. upgraded shares of Discover Financial Services (NYSE: DFS) from Neutral to Buy today. Bank of America Corp. currently has a rating of Buy on the stock. The one-year price target of $71.43 is less than the opening price of $72.00, that has caused a number of other analysts to issue statements on the stock in recent days. Looking back over the last 52 weeks, Discover Financial Services stock has a high of $73.55. Usually, after analysts give an upgrade report on a stock, they will later issue recurring revisions, such as a price target change.
Shares of Discover Financial Services (NYSE: DFS) opened at $72.00 on Tuesday and has traded in a range between, $71.97 and $73.55, and last traded at $73.40, an increase of $2.17 or 3.05% from the previous closing price.
Discover Financial Services (NYSE: DFS) now has a market cap of 28.95B.
Discover Financial Services (NYSE: DFS) Average Daily Trading Volume
449,982 shares crossed the trading desk yesterday, below the norm, out of a total float 390,431,000. Trading volume is likely to increase in the next few days as swing traders often use upticks in trading volume to identify heavy volume accumulation or dissemination by institutional investors.
However, a single day of significant buy side trading is not enough to affirm a trend. So market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Discover Financial Services (NYSE: DFS) 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 investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Discover Financial Services (NYSE: DFS) now has a 50-day MA of $64.58 and 200-day MA of $58.48. It has traded in a 52-week range between $42.86 – 73.55 and today’s last price is 0.20%% lower than the 52 week high of $73.55.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% for 3 consecutive years.
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