Capital One Financial Corporation (NYSE: COF) shares rose on Wednesday January 25 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened
The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.
The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.
All three main indexes set intraday records shortly after the opening bell.
Analysts at BMO Capital Markets reiterated a Buy rating on shares of Capital One Financial Corporation (NYSE: COF) in a reserach note to investors, making it one of the more actively watched stocks on Wall Street. With a rating of Buy on the stock, the company has a 52-week high of $91.64. As a means of comparison, a number of other analysts have spoken on the company in recent days, and the company has secured a consensus one-year price target of $95.39, above the opening price of $87.83. Usually, after analysts publish a “reiterated rating” report on a stock, they will later issue recurring revisions, such as a price target change.
Yesterday Capital One Financial Corporation (NYSE: COF) shares last traded at $88.80, which is an increase of $0.07 compared to the previous closing price. Opening at $87.83, they ranged from $87.60 and $88.81 throughout the day.
Capital One Financial Corporation (NYSE: COF) now has a market cap of 44.50B.
Capital One Financial Corporation (NYSE: COF) Average Daily Trading Volume
943,321 shares crossed the trading desk yesterday, 34 percent lower than the norm, out of a total float 497,497,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Capital One Financial Corporation (NYSE: COF) 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 investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Capital One Financial Corporation (NYSE: COF) now has a 50-day MA of $88.80 and 200-day MA of $76.53. It has traded in a 52-week range between $58.03 – 91.64 and today’s last price is 3.10%% lower than the 52 week high of $91.64.
Earnings growth is an important factor to look at when buying stocks and investors identify companies that have grown their earnings by at least 25% for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.