Synchrony Financial (NYSE:SYF) Plans Quarterly Dividend of $0.22

Synchrony Financial (NYSE:SYFGet Rating) declared a quarterly dividend on Thursday, April 21st, RTT News reports. Stockholders of record on Monday, May 2nd will be given a dividend of 0.22 per share by the financial services provider on Thursday, May 12th. This represents a $0.88 annualized dividend and a dividend yield of 2.21%.

Synchrony Financial has a dividend payout ratio of 15.4% meaning its dividend is sufficiently covered by earnings. Analysts expect Synchrony Financial to earn $5.77 per share next year, which means the company should continue to be able to cover its $0.88 annual dividend with an expected future payout ratio of 15.3%.

Shares of SYF traded down $0.90 during trading hours on Thursday, hitting $39.80. The company had a trading volume of 5,372,401 shares, compared to its average volume of 7,009,644. The firm has a fifty day moving average price of $38.43 and a 200-day moving average price of $44.23. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.19 and a current ratio of 1.25. The stock has a market capitalization of $20.15 billion, a price-to-earnings ratio of 5.52, a P/E/G ratio of 0.29 and a beta of 1.60. Synchrony Financial has a 52-week low of $33.76 and a 52-week high of $52.49.

Synchrony Financial (NYSE:SYFGet Rating) last posted its quarterly earnings results on Monday, April 18th. The financial services provider reported $1.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.54 by $0.23. Synchrony Financial had a return on equity of 30.77% and a net margin of 27.27%. During the same period last year, the firm posted $1.73 earnings per share. Research analysts anticipate that Synchrony Financial will post 5.66 earnings per share for the current fiscal year.

Synchrony Financial announced that its board has approved a stock repurchase program on Monday, April 18th that allows the company to repurchase $2.80 billion in shares. This repurchase authorization allows the financial services provider to purchase up to 13.6% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its shares are undervalued.

SYF has been the subject of several research analyst reports. Bank of America reduced their price objective on Synchrony Financial from $52.00 to $45.00 in a report on Thursday, March 17th. Barclays lifted their price objective on Synchrony Financial from $63.00 to $64.00 in a report on Monday, January 10th. Wells Fargo & Company reduced their price objective on Synchrony Financial from $52.00 to $45.00 and set an “overweight” rating for the company in a report on Wednesday, April 6th. Morgan Stanley downgraded Synchrony Financial from an “overweight” rating to an “equal weight” rating and reduced their price objective for the stock from $56.00 to $40.00 in a report on Monday, March 28th. Finally, Stephens cut their price target on Synchrony Financial from $54.00 to $47.00 and set an “equal weight” rating for the company in a research note on Tuesday. Eight investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $52.53.

In related news, insider David P. Melito sold 9,351 shares of the business’s stock in a transaction that occurred on Thursday, January 27th. The stock was sold at an average price of $46.05, for a total value of $430,613.55. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.44% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Penserra Capital Management LLC lifted its holdings in Synchrony Financial by 20.3% in the 4th quarter. Penserra Capital Management LLC now owns 2,444 shares of the financial services provider’s stock worth $113,000 after purchasing an additional 413 shares in the last quarter. Advisors Asset Management Inc. raised its holdings in shares of Synchrony Financial by 17.1% during the 4th quarter. Advisors Asset Management Inc. now owns 2,915 shares of the financial services provider’s stock worth $135,000 after acquiring an additional 426 shares in the last quarter. Synovus Financial Corp raised its holdings in shares of Synchrony Financial by 4.2% during the 4th quarter. Synovus Financial Corp now owns 8,414 shares of the financial services provider’s stock worth $389,000 after acquiring an additional 343 shares in the last quarter. MML Investors Services LLC raised its holdings in shares of Synchrony Financial by 3.5% during the 4th quarter. MML Investors Services LLC now owns 8,504 shares of the financial services provider’s stock worth $395,000 after acquiring an additional 291 shares in the last quarter. Finally, Forum Financial Management LP purchased a new stake in shares of Synchrony Financial during the 4th quarter worth approximately $397,000. 93.86% of the stock is currently owned by institutional investors.

About Synchrony Financial (Get Rating)

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 cards, 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 to retail and commercial customers, as well as accepts deposits through third-party securities brokerage firms.

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Dividend History for Synchrony Financial (NYSE:SYF)

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