Discover Financial Services (NYSE: DFS) shares were down on Wednesday January 25 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
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.
Discover Financial Services (NYSE: DFS) had its price target increased by equities researchers at JMP Securities from $0.00 to $78.00. With a rating of on the stock, the company has a 52-week high of $74.33. The one-year price target of $78.79 is higher than the opening price of $70.51, causing a number of other analysts to issue statements on the company in recent days.
Yesterday Discover Financial Services (NYSE: DFS) shares last traded at $69.26, a dip of $0.62 from the previous closing price. Opening at $70.51, they varied from $68.50 and $71.17 throughout the day.
Discover Financial Services (NYSE: DFS) now has a market cap of 27.32B.
Discover Financial Services (NYSE: DFS) Average Daily Trading Volume
952,865 shares crossed the trading desk yesterday, 107 percent below normal, out of a total float 390,474,000. 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.
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 professional investors retain teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.
Discover Financial Services (NYSE: DFS) 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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Discover Financial Services (NYSE: DFS) have ranged from $42.86 – 74.33, and the stock now has a 50-day MA of $71.68 and 200-day MA of $61.85. Today’s last price is 6.82%% below the 52 week high of $74.33.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more for the past 3 years.
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