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

Synchrony Financial (NYSE:SYF) has been given an average rating of “Moderate Buy” by the twenty-four analysts that are presently covering the firm, Marketbeat Ratings reports. Eleven analysts have rated the stock with a hold recommendation, twelve have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $86.4737.

A number of analysts recently commented on the company. Wall Street Zen raised Synchrony Financial from a “hold” rating to a “buy” rating in a research note on Saturday. UBS Group raised their price objective on shares of Synchrony Financial from $78.00 to $79.00 and gave the stock a “neutral” rating in a report on Tuesday, October 7th. BTIG Research reiterated a “buy” rating and set a $100.00 target price on shares of Synchrony Financial in a report on Thursday, October 16th. Wells Fargo & Company raised their target price on Synchrony Financial from $95.00 to $100.00 and gave the company an “overweight” rating in a research note on Monday, January 5th. Finally, Keefe, Bruyette & Woods upped their price target on Synchrony Financial from $95.00 to $98.00 and gave the stock an “outperform” rating in a research note on Friday, January 2nd.

Synchrony Financial Stock Performance

Synchrony Financial stock opened at $80.25 on Friday. 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 firm has a market cap of $28.90 billion, a P/E ratio of 8.76, a P/E/G ratio of 0.55 and a beta of 1.43. Synchrony Financial has a 1-year low of $40.54 and a 1-year high of $88.77. The firm has a 50-day moving average of $80.46 and a 200-day moving average of $75.29.

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

Synchrony Financial Announces Dividend

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

Synchrony Financial declared that its board has authorized a share 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 reacquire up to 3.7% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, insider Darrell Owens sold 2,989 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 transaction of $221,245.78. Following the sale, the insider directly owned 16,096 shares of the company’s stock, valued at $1,191,425.92. This trade represents a 15.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Jonathan S. Mothner sold 32,000 shares of the business’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 completion of the transaction, the insider directly owned 127,100 shares of the company’s stock, valued at approximately $9,252,880. This trade represents a 20.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 55,075 shares of company stock valued at $4,036,892 over the last ninety days. Insiders own 0.32% of the company’s stock.

Institutional Trading of Synchrony Financial

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

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.