Synchrony Financial (NYSE: SYF) shares rose in value Monday Dec 5 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, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Vetr Inc. upgraded shares of Synchrony Financial (NYSE: SYF) from Hold to Strong-Buy today. With a rating of Strong-Buy on the stock, the company has a 52-week high of $35.45. The one-year price target of $37.10 is above the opening price of $34.85, causing a number of other analysts to issue statements on the stock recently. Typically, after analysts assign an upgrade report on a stock, they will later issue recurring revisions, usually followed by a price target change.
Synchrony Financial (NYSE: SYF) shares last traded at $35.30, which represents an increase of $0.81 or 2.35% from the previous closing price. Opening at $34.85, they ranged from $34.81 and $35.30 throughout the day.
Synchrony Financial (NYSE: SYF) now has a market cap of 29.14B.
Synchrony Financial (NYSE: SYF) Average Daily Trading Volume
480,152 shares crossed the trading desk yesterday, lower than the norm, out of a total float 811,771,000. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to pinpoint heavy volume growth or distribution 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 cue to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
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 are able to make make more impactful judgments on trades when they track the activity of professional investors.
With that in mind, Synchrony Financial (NYSE: SYF) now has a 50-day MA of $30.74 and 200-day MA of $28.50. It has traded in a 52-week range between $23.25 – 35.45 and today’s last price is 0.42%% lower than the 52 week high of $35.45.
Earnings growth is an important factor to research when buying stocks and investors identify companies that have increased their earnings at least 25% or more for a 3 year period.
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