Royal Bank Of Canada Cuts Synchrony Financial (NYSE:SYF) Price Target to $85.00

Synchrony Financial (NYSE:SYF) had its target price lowered by Royal Bank Of Canada from $91.00 to $85.00 in a research report sent to investors on Wednesday morning,Benzinga reports. The firm currently has a sector perform rating on the financial services provider’s stock.

Several other research analysts have also commented on SYF. HSBC upgraded Synchrony Financial from a “hold” rating to a “buy” rating and lifted their price target for the stock from $73.00 to $81.00 in a research report on Friday, October 10th. UBS Group lifted their target price on Synchrony Financial from $78.00 to $79.00 and gave the stock a “neutral” rating in a report on Tuesday, October 7th. Robert W. Baird downgraded Synchrony Financial from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 5th. Wells Fargo & Company raised their price target on Synchrony Financial from $95.00 to $100.00 and gave the stock an “overweight” rating in a research report on Monday, January 5th. Finally, Wall Street Zen raised shares of Synchrony Financial from a “hold” rating to a “buy” rating in a research note on Saturday, January 17th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, Synchrony Financial presently has an average rating of “Moderate Buy” and a consensus target price of $87.05.

Synchrony Financial Trading Down 1.0%

Shares of SYF opened at $72.63 on Wednesday. The stock has a market capitalization of $26.16 billion, a PE ratio of 7.82, a P/E/G ratio of 0.51 and a beta of 1.43. The company’s fifty day moving average is $80.96 and its 200 day moving average is $75.64. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.24 and a current ratio of 1.24. Synchrony Financial has a fifty-two week low of $40.54 and a fifty-two week high of $88.77.

Synchrony Financial (NYSE:SYF) last released its quarterly earnings data on Tuesday, January 27th. The financial services provider reported $2.18 EPS for the quarter, beating the consensus estimate of $2.02 by $0.16. Synchrony Financial had a net margin of 15.72% and a return on equity of 23.07%. The business had revenue of $3.79 billion during the quarter, compared to analyst estimates of $3.84 billion. During the same quarter last year, the business earned $1.91 earnings per share. Synchrony Financial’s quarterly revenue was down .2% compared to the same quarter last year. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Sell-side analysts expect that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 17th. Shareholders of record on Friday, February 6th will be paid a $0.30 dividend. The ex-dividend date is Friday, February 6th. This represents a $1.20 dividend on an annualized basis and a yield of 1.7%. Synchrony Financial’s dividend payout ratio (DPR) is presently 12.92%.

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

Insider Activity at Synchrony Financial

In other news, Director Arthur W. Coviello, Jr. sold 8,000 shares of the company’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 directly owned 35,769 shares in the company, valued at approximately $2,644,402.17. This represents a 18.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Curtis Howse sold 12,086 shares of Synchrony Financial 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 sale, the insider owned 108,271 shares of the company’s stock, valued at $8,014,219.42. The trade was a 10.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 55,075 shares of company stock valued at $4,036,892. Company insiders own 0.32% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. NewEdge Advisors LLC increased its holdings in Synchrony Financial by 8.9% during the 1st quarter. NewEdge Advisors LLC now owns 8,302 shares of the financial services provider’s stock worth $439,000 after purchasing an additional 679 shares during the period. Woodline Partners LP grew its position in shares of Synchrony Financial by 36.2% during the 1st quarter. Woodline Partners LP now owns 35,582 shares of the financial services provider’s stock worth $1,884,000 after buying an additional 9,460 shares in the last quarter. Focus Partners Wealth increased its stake in shares of Synchrony Financial by 7.7% during the first quarter. Focus Partners Wealth now owns 6,406 shares of the financial services provider’s stock valued at $339,000 after buying an additional 459 shares during the period. Geneos Wealth Management Inc. raised its holdings in shares of Synchrony Financial by 337.0% in the first quarter. Geneos Wealth Management Inc. now owns 590 shares of the financial services provider’s stock valued at $31,000 after acquiring an additional 455 shares in the last quarter. Finally, Sivia Capital Partners LLC raised its holdings in shares of Synchrony Financial by 56.1% in the second quarter. Sivia Capital Partners LLC now owns 6,062 shares of the financial services provider’s stock valued at $405,000 after acquiring an additional 2,178 shares in the last quarter. Institutional investors own 96.48% of the company’s stock.

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.