Synchrony Financial (NYSE:SYF) Given Consensus Rating of “Moderate Buy” by Analysts

Synchrony Financial (NYSE:SYF) has earned a consensus rating of “Moderate Buy” from the twenty-three brokerages that are currently covering the stock, Marketbeat Ratings reports. Eleven analysts have rated the stock with a hold recommendation, eleven have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $83.3333.

SYF has been the subject of several analyst reports. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $75.00 price target (down from $80.00) on shares of Synchrony Financial in a report on Tuesday, October 7th. BTIG Research reiterated a “buy” rating and issued a $100.00 target price on shares of Synchrony Financial in a research note on Thursday, October 16th. UBS Group increased their target price on Synchrony Financial from $78.00 to $79.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 7th. Morgan Stanley lifted their price target on Synchrony Financial from $72.00 to $82.00 and gave the company an “equal weight” rating in a report on Monday, September 29th. Finally, JMP Securities upped their price objective on shares of Synchrony Financial from $77.00 to $88.00 and gave the company a “market outperform” rating in a research note on Thursday, September 25th.

Insider Transactions at Synchrony Financial

In related news, insider Curtis Howse sold 12,086 shares of the stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $74.02, for a total value of $894,605.72. Following the transaction, the insider directly owned 108,271 shares of the company’s stock, valued at approximately $8,014,219.42. This trade represents a 10.04% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Arthur W. Coviello, Jr. sold 8,000 shares of Synchrony Financial stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $73.93, for a total value of $591,440.00. Following the completion of the transaction, the director owned 35,769 shares in the company, valued at $2,644,402.17. The trade was a 18.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 55,075 shares of company stock valued at $4,036,892. Corporate insiders own 0.33% of the company’s stock.

Institutional Trading of Synchrony Financial

A number of institutional investors and hedge funds have recently bought and sold shares of SYF. Westside Investment Management Inc. lifted its holdings in 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 purchasing an additional 179 shares during the last quarter. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna purchased a new position in shares of Synchrony Financial in the second quarter worth about $26,000. FWL Investment Management LLC bought a new stake in shares of Synchrony Financial in the third quarter valued at approximately $26,000. Salomon & Ludwin LLC lifted its stake in shares of Synchrony Financial by 54.9% during the 3rd quarter. Salomon & Ludwin LLC now owns 412 shares of the financial services provider’s stock valued at $29,000 after buying an additional 146 shares in the last quarter. Finally, Palisade Asset Management LLC purchased a new stake in shares of Synchrony Financial during the 3rd quarter valued at approximately $29,000. Institutional investors and hedge funds own 96.48% of the company’s stock.

Synchrony Financial Price Performance

NYSE:SYF opened at $85.54 on Wednesday. Synchrony Financial has a 12-month low of $40.54 and a 12-month high of $86.22. The firm has a market cap of $30.81 billion, a price-to-earnings ratio of 9.34, a price-to-earnings-growth ratio of 0.60 and a beta of 1.46. The company’s 50-day moving average is $76.74 and its two-hundred day moving average is $72.76. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.91.

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

Synchrony Financial announced that its Board of Directors has initiated a stock buyback plan on Wednesday, October 15th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 3.7% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Synchrony Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, November 17th. Shareholders of record on Wednesday, November 5th were issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date was Wednesday, November 5th. Synchrony Financial’s dividend payout ratio (DPR) is 13.10%.

Synchrony Financial Company Profile

Synchrony Financial (NYSE: SYF) is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite.

Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants’ checkout experiences.