Synchrony Financial (NYSE: SYF) shares slid back in value Tuesday Dec 6 with lighter 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. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.
The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%
Analysts at Zacks Investment Research upgraded shares of Synchrony Financial (NYSE: SYF) from Hold to Buy today. With a rating of Buy on the stock, Synchrony Financial has a 52-week high of $35.52. The one-year price target of $37.75 is higher than the opening price of $35.27, that has caused a fair amount of other analysts to comment on the company recently. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Synchrony Financial (NYSE: SYF) shares last traded at $34.97, which represents a dip of $0.14 per share or -0.40% compared to the previous closing price. Opening at $35.27, they varied from $34.92 and $35.29 throughout the day.
Synchrony Financial (NYSE: SYF) now has a market cap of 28.87B.
Synchrony Financial (NYSE: SYF) Average Daily Trading Volume
The stock’s average daily volume is 7,644,390 shares out of a total float 811,771,000 and some 227,431 shares crossed the trading desk yesterday, below the average. Swing traders often use upticks in trading volume to pinpoint heavy volume aggregation or circulation by institutional investors, so trading volume is likely to increase in the next few days.
While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good corroboration 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 effective judgments on trades when they follow the trading habits of professional investors.
Trades for Synchrony Financial (NYSE: SYF) have ranged from $23.25 – 35.52, and the stock now has a 50-day MA of $30.98 and 200-day MA of $28.52. Today’s last price is 1.55%% under the 52 week high of $35.52.
Earnings growth is an important factor to look at when investing in stocks and investors seek companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.
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