Syntel, Inc. (NASDAQ: SYNT) shares rose in early trading today on lower trade volume than normal after more analysts initiated coverage on the stock.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
Analysts at Loop Capital initiated coverage on Syntel, Inc. (NASDAQ: SYNT) stock, starting the company at Buy. The company currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has secured a consensus one-year price target of $23.88, above the opening price of $20.68. Syntel, Inc. stock has a 52-week high of $50.92. Analysts and brokerage firms will subsequently issue periodic updates after initiating coverage,. Price changes targets are not unheard of.
Yesterday Syntel, Inc. (NASDAQ: SYNT) shares last traded at $20.79, which represents an increase of $0.36 compared to the previous closing price. Opening at $20.68, they ranged from $20.61 and $20.79 throughout the day.
Syntel, Inc. (NASDAQ: SYNT) now has a market cap of 1.75B.
Syntel, Inc. (NASDAQ: SYNT) Average Daily Trading Volume
The stock’s average daily volume is 716,992 shares out of a total float 39,466,000 and some 45,176 shares crossed the trading desk yesterday, 35 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
Syntel, Inc. (NASDAQ: SYNT) 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 traders to make those trends work in their favor and increase the number of successful trades.
Trades for Syntel, Inc. (NASDAQ: SYNT) have ranged from $18.00 – 50.92, and the stock now has a 50-day MA of $19.94 and 200-day MA of $33.49. Today’s last price is 59.17%% under the 52 week high of $50.92.
Earnings growth is a critical factor to consider when investing in stocks and investors seek companies that have grown their earnings by at least 25% for 3 consecutive years.
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