Discover Financial Services (NYSE: DFS) 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 a Neutral rating on shares of Discover Financial Services (NYSE: DFS) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Neutral on the shares. As a means of comparison, a number of other analysts have commented on the company in recent days, and Discover Financial Services has earned a consensus one-year price target of $69.00, above the opening price of $68.00. Discover Financial Services stock has a 52-week high of $68.88. Stock prices sometimes get a spike to the upside when analysts reiterate coverage.
Discover Financial Services (NYSE: DFS) shares last traded at $67.95, which is a spike of $0.18 or 0.27% compared to the previous closing price. Opening at $68.00, they varied from $67.78 and $68.27 throughout the day.
Discover Financial Services (NYSE: DFS) now has a market cap of 26.80B.
Discover Financial Services (NYSE: DFS) Average Daily Trading Volume
The stock’s average daily volume is 2,843,180 shares out of a total float 390,383,000 and some 167,240 shares traded hands yesterday, below normal. Investors often use swings in trading volume to identify large volume growth or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
However, just a day of high volume buy side trading is not enough to determine a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship just 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. Thus, 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.
Trades for Discover Financial Services (NYSE: DFS) have ranged from $42.86 – 68.88, and the stock now has a 50-day MA of $59.64 and 200-day MA of $57.23. Today’s last price is 1.35%% below the 52 week high of $68.88.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more for 3 consecutive years.
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