Synchrony Financial (NYSE:SYF) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

by · The Cerbat Gem

Synchrony Financial (NYSE:SYF – Get Free Report) had its target price boosted by equities researchers at Wells Fargo & Company from $85.00 to $95.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has an “overweight” rating on the financial services provider’s stock. Wells Fargo & Company‘s price target indicates a potential upside of 14.31% from the stock’s previous close.

SYF has been the topic of a number of other reports. JMP Securities raised their price target on shares of Synchrony Financial from $77.00 to $88.00 and gave the stock a “market outperform” rating in a research report on Thursday, September 25th. Wall Street Zen cut Synchrony Financial from a “buy” rating to a “hold” rating in a report on Friday, November 28th. Evercore ISI raised their price objective on shares of Synchrony Financial from $83.00 to $84.00 and gave the company an “outperform” rating in a research report on Tuesday, September 30th. Baird R W downgraded Synchrony Financial from a “strong-buy” rating to a “hold” rating in a report on Friday, December 5th. Finally, HSBC raised shares of Synchrony Financial from a “hold” rating to a “buy” rating and boosted their target price for the company from $73.00 to $81.00 in a research note on Friday, October 10th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $82.56.

View Our Latest Stock Report on Synchrony Financial

Synchrony Financial Stock Down 0.3%

NYSE:SYF traded down $0.28 on Wednesday, reaching $83.11. The stock had a trading volume of 569,060 shares, compared to its average volume of 3,821,760. The company has a 50-day moving average of $75.34 and a 200 day moving average of $71.83. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.91. The stock has a market cap of $29.93 billion, a P/E ratio of 9.08, a price-to-earnings-growth ratio of 0.58 and a beta of 1.46. Synchrony Financial has a 12-month low of $40.54 and a 12-month high of $86.22.

Synchrony Financial (NYSE:SYF – Get Free Report) last released its quarterly earnings results on Wednesday, October 15th. The financial services provider reported $2.86 EPS for the quarter, topping the consensus estimate of $2.22 by $0.64. Synchrony Financial had a return on equity of 22.96% and a net margin of 15.84%.The business had revenue of $3.82 billion for the quarter, compared to analysts’ expectations of $3.79 billion. During the same quarter in the previous year, the firm posted $1.94 earnings per share. The company’s revenue was up .2% compared to the same quarter last year. On average, research analysts predict that Synchrony Financial will post 7.67 earnings per share for the current year.

Synchrony Financial announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, October 15th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 3.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In related news, insider Curtis Howse sold 12,086 shares of the stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $74.02, for a total transaction of $894,605.72. Following the completion of the sale, the insider owned 108,271 shares in the company, valued at $8,014,219.42. This trade represents a 10.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Darrell Owens sold 2,989 shares of Synchrony Financial stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $74.02, for a total value of $221,245.78. Following the completion of the transaction, the insider owned 16,096 shares of the company’s stock, valued at approximately $1,191,425.92. The trade was a 15.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 55,075 shares of company stock worth $4,036,892 over the last 90 days. Corporate insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Norges Bank acquired a new stake in shares of Synchrony Financial in the 2nd quarter valued at approximately $299,360,000. Bank of America Corp DE increased its holdings in Synchrony Financial by 34.6% in the 2nd quarter. Bank of America Corp DE now owns 13,595,381 shares of the financial services provider’s stock valued at $907,356,000 after buying an additional 3,494,741 shares during the period. Assetmark Inc. increased its stake in shares of Synchrony Financial by 48.3% in the 3rd quarter. Assetmark Inc. now owns 4,349,059 shares of the financial services provider’s stock valued at $309,001,000 after purchasing an additional 1,416,909 shares during the last quarter. Khrom Capital Management LLC bought a new position in Synchrony Financial in the 1st quarter valued at approximately $73,699,000. Finally, Ameriprise Financial Inc. increased its holdings in Synchrony Financial by 36.0% in the 1st quarter. Ameriprise Financial Inc. now owns 4,900,281 shares of the financial services provider’s stock worth $259,421,000 after purchasing an additional 1,297,859 shares in the last quarter. 96.48% of the stock is owned by institutional investors and hedge funds.

Synchrony Financial Company Profile

(Get Free Report)

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.

Read More