Synchrony Financial (SYF) Stock Up After Upgrade at Bank of America Corp.

Synchrony Financial (NYSE: SYF) shares rose in value Thursday Dec 15 with lower 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 Synchrony Financial (NYSE: SYF) from Neutral to Buy today. With a rating of Buy on the shares, Synchrony Financial has a 52-week high of $37.13. The one-year price target of $37.81 is higher than the opening price of $36.26, that has caused a fair amount of other analysts to issue statements on the company in recent days. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.

Shares of Synchrony Financial (NYSE: SYF) opened at $36.26 on Tuesday trading between $36.26 and $37.13, and last traded at $37.04, which represents an increase of $1.10 or 3.05% from the previous closing price.

Synchrony Financial (NYSE: SYF) currently has a market cap of 30.57B.

Synchrony Financial (NYSE: SYF) Average Daily Trading Volume

1,453,935 shares traded hands yesterday, below normal, out of a total float 811,771,000. Trading volume is likely to increase in the next few days as investors often use swings in trading volume to determine large volume aggregation or circulation by institutional investors.

While an increase in trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship is defined by 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 research 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 following the activity of these professional investors—and the moving averages they affect— traders can make smarter trades.

With that in mind, Synchrony Financial (NYSE: SYF) now has a 50-day MA of $32.71 and 200-day MA of $28.82. It has traded in a 52-week range between $23.25 – 37.130 and today’s last price is 0.26%% lower than the 52 week high of $37.13.

Earnings growth is an important factor to look at when buying stocks and investors watch for companies that have raised their earnings at least 25% or more for 3 consecutive years.

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