Synchrony Financial (NYSE: SYF) shares rose on Monday January 23 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.
Meanwhile, U.S. stocks flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
Synchrony Financial (NYSE: SYF) had its price target boosted by equities researchers at JMP Securities from $0.00 to $41.00. With a rating of on the stock, the company has a 52-week high of $38.06. The one-year price target of $42.14 is above the opening price of $36.03, causing a fair amount of other analysts to issue statements on the stock recently.
Yesterday Synchrony Financial (NYSE: SYF) shares last traded at $36.34, which represents a jump of $0.10 compared to the previous closing price. Opening at $36.03, they varied from $36.02 and $36.49 throughout the day.
Synchrony Financial (NYSE: SYF) currently has a market cap of 29.70B.
Synchrony Financial (NYSE: SYF) Average Daily Trading Volume
The stock’s average daily volume is 6,967,680 shares out of a total float 803,839,000 and some 661,917 shares traded hands yesterday, 54 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts researching thousands of stocks. Thus, 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.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Synchrony Financial (NYSE: SYF) now has a 50-day MA of $36.42 and 200-day MA of $30.35. It has traded in a 52-week range between $23.25 – 38.06 and today’s last price is 4.51%% lower than the 52 week high of $38.06.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings by at least 25% over a 3 year period.
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