Synchrony Financial (NYSE:SYF) Hits New 12-Month High at $45.87

Synchrony Financial (NYSE:SYF)’s stock price hit a new 52-week high during trading on Friday . The company traded as high as $45.87 and last traded at $45.63, with a volume of 654157 shares changing hands. The stock had previously closed at $45.00.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Morgan Stanley reaffirmed an “underweight” rating and set a $30.00 price objective on shares of Synchrony Financial in a research report on Thursday, February 8th. StockNews.com raised Synchrony Financial from a “hold” rating to a “buy” rating in a research report on Thursday, April 25th. JPMorgan Chase & Co. raised their target price on Synchrony Financial from $42.00 to $46.00 and gave the stock a “neutral” rating in a research report on Thursday, April 25th. Oppenheimer reaffirmed a “market perform” rating on shares of Synchrony Financial in a report on Wednesday, March 6th. Finally, Piper Sandler raised their price objective on shares of Synchrony Financial from $46.00 to $48.00 and gave the stock an “overweight” rating in a report on Wednesday, January 24th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating and ten have given a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $43.74.

Synchrony Financial Price Performance

The company has a 50-day moving average of $42.15 and a 200-day moving average of $37.39. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.23 and a current ratio of 1.24. The stock has a market cap of $18.31 billion, a price-to-earnings ratio of 6.54, a PEG ratio of 1.11 and a beta of 1.58.

Synchrony Financial (NYSE:SYF) last released its earnings results on Wednesday, April 24th. The financial services provider reported $1.18 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.37 by ($0.19). Synchrony Financial had a net margin of 13.49% and a return on equity of 16.01%. The company had revenue of $5.57 billion during the quarter, compared to analyst estimates of $4.44 billion. During the same period in the previous year, the firm posted $1.35 EPS. As a group, equities research analysts predict that Synchrony Financial will post 5.62 earnings per share for the current year.

Synchrony Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 15th. Shareholders of record on Monday, May 6th will be paid a $0.25 dividend. The ex-dividend date is Friday, May 3rd. This represents a $1.00 annualized dividend and a yield of 2.19%. Synchrony Financial’s dividend payout ratio is currently 14.35%.

Synchrony Financial announced that its board has approved a stock buyback program on Wednesday, April 24th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 5.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its shares are undervalued.

Insider Activity

In related news, insider Brian D. Doubles sold 134,696 shares of the stock in a transaction dated Tuesday, March 5th. The shares were sold at an average price of $41.26, for a total transaction of $5,557,556.96. Following the completion of the transaction, the insider now directly owns 660,353 shares of the company’s stock, valued at $27,246,164.78. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In related news, insider Brian D. Doubles sold 134,696 shares of Synchrony Financial stock in a transaction that occurred on Tuesday, March 5th. The stock was sold at an average price of $41.26, for a total value of $5,557,556.96. Following the sale, the insider now directly owns 660,353 shares in the company, valued at $27,246,164.78. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Curtis Howse sold 6,179 shares of the company’s stock in a transaction on Friday, March 15th. The stock was sold at an average price of $42.82, for a total value of $264,584.78. Following the transaction, the insider now directly owns 152,604 shares in the company, valued at approximately $6,534,503.28. The disclosure for this sale can be found here. Insiders own 0.65% of the company’s stock.

Hedge Funds Weigh In On Synchrony Financial

A number of large investors have recently made changes to their positions in SYF. Mediolanum International Funds Ltd purchased a new position in Synchrony Financial in the 1st quarter valued at approximately $8,809,000. GSA Capital Partners LLP grew its holdings in Synchrony Financial by 76.4% in the first quarter. GSA Capital Partners LLP now owns 13,247 shares of the financial services provider’s stock valued at $571,000 after purchasing an additional 5,738 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S increased its position in shares of Synchrony Financial by 156.2% in the first quarter. BI Asset Management Fondsmaeglerselskab A S now owns 18,204 shares of the financial services provider’s stock valued at $785,000 after buying an additional 11,099 shares in the last quarter. Central Pacific Bank Trust Division acquired a new position in shares of Synchrony Financial during the 1st quarter worth $89,000. Finally, Whittier Trust Co. of Nevada Inc. raised its stake in shares of Synchrony Financial by 6.0% during the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 31,942 shares of the financial services provider’s stock worth $1,377,000 after buying an additional 1,801 shares during the last quarter. Hedge funds and other institutional investors own 96.48% of the company’s stock.

Synchrony Financial Company Profile

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.