Synchrony Financial (NYSE:SYF) Receives Consensus Rating of “Hold” from Analysts

Synchrony Financial (NYSE:SYF) has been given a consensus recommendation of “Hold” by the twenty brokerages that are currently covering the firm, MarketBeat reports. One analyst has rated the stock with a sell rating, ten have given a hold rating and nine have assigned a buy rating to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $43.74.

SYF has been the subject of several research reports. TD Cowen increased their price objective on shares of Synchrony Financial from $49.00 to $51.00 and gave the stock a “buy” rating in a research report on Thursday, April 25th. Wolfe Research raised Synchrony Financial from an “underperform” rating to an “outperform” rating and lifted their price target for the company from $36.00 to $50.00 in a research note on Thursday, April 4th. Evercore ISI upped their price objective on Synchrony Financial from $45.00 to $47.00 and gave the stock an “outperform” rating in a research report on Thursday, March 28th. JMP Securities lifted their target price on Synchrony Financial from $35.00 to $42.00 and gave the company a “market outperform” rating in a research report on Friday, January 12th. Finally, Wells Fargo & Company upped their price target on Synchrony Financial from $38.00 to $45.00 and gave the stock an “equal weight” rating in a research report on Wednesday, April 10th.

Synchrony Financial Stock Performance

SYF stock opened at $45.27 on Friday. Synchrony Financial has a 1-year low of $26.67 and a 1-year high of $46.72. The business’s 50-day moving average price is $42.36 and its two-hundred day moving average price is $37.74. The firm has a market cap of $18.18 billion, a PE ratio of 6.49, a P/E/G ratio of 1.12 and a beta of 1.58. The company has a current ratio of 1.24, a quick ratio of 1.23 and a debt-to-equity ratio of 1.15.

Synchrony Financial (NYSE:SYF) last issued its quarterly earnings data on Wednesday, April 24th. The financial services provider reported $1.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.37 by ($0.19). The business had revenue of $5.57 billion during the quarter, compared to analyst estimates of $4.44 billion. Synchrony Financial had a net margin of 13.49% and a return on equity of 16.01%. During the same quarter in the prior year, the firm posted $1.35 earnings per share. As a group, research analysts forecast that Synchrony Financial will post 5.62 earnings per share for the current year.

Synchrony Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 15th. Investors of record on Monday, May 6th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.21%. The ex-dividend date is Friday, May 3rd. Synchrony Financial’s dividend payout ratio (DPR) is presently 14.35%.

Synchrony Financial declared that its board has approved a stock buyback plan on Wednesday, April 24th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 5.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity

In related news, insider Curtis Howse sold 6,179 shares of Synchrony Financial stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $42.82, for a total transaction of $264,584.78. Following the completion of the sale, the insider now owns 152,604 shares of the company’s stock, valued at approximately $6,534,503.28. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In other news, insider Brian D. Doubles sold 134,696 shares of the stock in a transaction that occurred on Tuesday, March 5th. The stock was sold at an average price of $41.26, for a total transaction of $5,557,556.96. Following the transaction, the insider now owns 660,353 shares in the company, valued at $27,246,164.78. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Curtis Howse sold 6,179 shares of the business’s stock in a transaction on Friday, March 15th. The shares were sold at an average price of $42.82, for a total value of $264,584.78. Following the completion of the sale, the insider now owns 152,604 shares of the company’s stock, valued at $6,534,503.28. The disclosure for this sale can be found here. Insiders have sold 172,437 shares of company stock valued at $7,242,432 over the last ninety days. 0.65% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Synchrony Financial

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Exchange Traded Concepts LLC bought a new position in Synchrony Financial during the third quarter worth about $35,000. Massmutual Trust Co. FSB ADV raised its position in shares of Synchrony Financial by 44.1% in the fourth quarter. Massmutual Trust Co. FSB ADV now owns 1,274 shares of the financial services provider’s stock valued at $49,000 after buying an additional 390 shares in the last quarter. Wetzel Investment Advisors Inc. acquired a new stake in Synchrony Financial during the fourth quarter worth approximately $55,000. Brown Brothers Harriman & Co. increased its stake in Synchrony Financial by 56.6% during the 4th quarter. Brown Brothers Harriman & Co. now owns 1,445 shares of the financial services provider’s stock worth $55,000 after acquiring an additional 522 shares during the period. Finally, Principal Securities Inc. acquired a new position in Synchrony Financial in the 4th quarter valued at $60,000. Institutional investors and hedge funds own 96.48% of the company’s stock.

Synchrony Financial Company Profile

Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products, and consumer installment loans. The company also offers private label credit cards, dual co-brand and general purpose credit cards, short- and long-term installment loans, and consumer banking products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, and savings accounts, and sweep and affinity deposits, as well as accepts deposits through third-party securities brokerage firms.