Analysts at Jefferies Group initiated coverage on First Data Corp. (NYSE: FDC) stock, starting the company at Buy and a price target of $16.50. As a means of comparison, a number of other analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $16.24, $13.60. First Data Corp.stock has a 52-week high of $17.99.
U.S. stocks finished August with its second consecutive day of losses, albeit moderately. Volume for the day was less than stellar as traders readied themselves for a long holiday weekend.
The Dow Jones Industrial Average fell 53 points, or 0.29 percent, to 18,401.
The S&P 500 shed a little more than 5 points, or 0.24 percent, to close at 2,171.
The Nasdaq lost 10 points, or 0.19 percent, to finish at 5,213.
Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of First Data Corp. (NYSE: FDC) opened at $13.60 and traded in a range between, $13.56 and $14.00 yesterday, and last traded at $13.92, which represents a change of $ 0.47 over the previous closing price.
First Data Corp. (NYSE: FDC) currently has a market cap of 12.67B
The stocks average daily volume is 5,033,000 shares out of a total float 334,748,000 of and some 5,984,959 shares traded hands yesterday, 62 percent higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
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 First Data Corp. (NYSE: FDC) now has a 50-day MA is $12.81 and 200-day MA is $12.27, and it has traded in a 52-week range between $8.37 – 17.99 and today’s last price is -22.62 percent off the 52 week high.
Indeed, earnings growth is among the most important things to look in regards to stock investing and, accordingly, investors seek companies who have been successful at growing their earnings by at least 25 percent over a 3 year period.
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