Synchrony Financial (NYSE:SYF) Given Average Recommendation of “Moderate Buy” by Brokerages

by · The Cerbat Gem

Shares of Synchrony Financial (NYSE:SYF – Get Free Report) have been assigned a consensus rating of “Moderate Buy” from the twenty-two analysts that are presently covering the company, MarketBeat reports. Eleven research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $81.4118.

SYF has been the subject of a number of recent research reports. Barclays raised their target price on Synchrony Financial from $83.00 to $86.00 and gave the stock an “overweight” rating in a research report on Thursday, October 16th. Morgan Stanley lifted their target price on Synchrony Financial from $72.00 to $82.00 and gave the company an “equal weight” rating in a report on Monday, September 29th. Keefe, Bruyette & Woods upped their price target on shares of Synchrony Financial from $82.00 to $86.00 and gave the stock an “outperform” rating in a report on Wednesday, October 1st. UBS Group upped their price objective on shares of Synchrony Financial from $78.00 to $79.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 7th. Finally, BTIG Research restated a “buy” rating and set a $100.00 price target on shares of Synchrony Financial in a research report on Thursday, October 16th.

Check Out Our Latest Analysis on Synchrony Financial

Synchrony Financial Stock Down 0.0%

SYF opened at $80.37 on Friday. Synchrony Financial has a fifty-two week low of $40.54 and a fifty-two week high of $80.65. The firm has a market capitalization of $28.95 billion, a P/E ratio of 8.77, a PEG ratio of 0.56 and a beta of 1.46. The company’s 50-day moving average is $73.66 and its 200 day moving average is $70.42. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.24 and a quick ratio of 1.24.

Synchrony Financial (NYSE:SYF – Get Free Report) last posted its quarterly earnings data on Wednesday, October 15th. The financial services provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.22 by $0.64. The firm had revenue of $3.82 billion during the quarter, compared to analyst estimates of $3.79 billion. Synchrony Financial had a net margin of 15.84% and a return on equity of 22.96%. The company’s revenue for the quarter was up .2% on a year-over-year basis. During the same quarter last year, the business posted $1.94 EPS. Research analysts expect that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, November 17th. Investors of record on Wednesday, November 5th were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend was Wednesday, November 5th. Synchrony Financial’s payout ratio is presently 13.10%.

Synchrony Financial announced that its Board of Directors has initiated a share repurchase program on Wednesday, October 15th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 3.7% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In related news, insider Jonathan S. Mothner sold 32,000 shares of the firm’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $72.80, for a total value of $2,329,600.00. Following the sale, the insider directly owned 127,100 shares of the company’s stock, valued at $9,252,880. This trade represents a 20.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Arthur W. Coviello, Jr. sold 8,000 shares of the business’s stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $73.93, for a total value of $591,440.00. Following the transaction, the director owned 35,769 shares in the company, valued at approximately $2,644,402.17. This represents a 18.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 55,075 shares of company stock worth $4,036,892 over the last ninety days. 0.32% of the stock is owned by insiders.

Institutional Investors Weigh In On Synchrony Financial

A number of large investors have recently made changes to their positions in the business. Westside Investment Management Inc. raised its holdings in shares of Synchrony Financial by 100.0% during the third quarter. Westside Investment Management Inc. now owns 358 shares of the financial services provider’s stock valued at $25,000 after acquiring an additional 179 shares in the last quarter. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna purchased a new position in Synchrony Financial during the 2nd quarter valued at $26,000. FWL Investment Management LLC purchased a new position in Synchrony Financial during the 3rd quarter valued at $26,000. Salomon & Ludwin LLC lifted its position in shares of Synchrony Financial by 54.9% in the 3rd quarter. Salomon & Ludwin LLC now owns 412 shares of the financial services provider’s stock worth $29,000 after purchasing an additional 146 shares during the period. Finally, Palisade Asset Management LLC bought a new stake in shares of Synchrony Financial during the 3rd quarter valued at about $29,000. 96.48% of the stock is currently owned by institutional investors.

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.

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