Synchrony Financial Target of Unusually High Options Trading (NYSE:SYF)

Synchrony Financial (NYSE:SYF) saw some unusual options trading activity on Thursday. Investors purchased 7,662 call options on the stock. This is an increase of 122% compared to the typical daily volume of 3,452 call options.

Wall Street Analyst Weigh In

Several analysts recently commented on SYF shares. Wells Fargo & Company upped their target price on Synchrony Financial from $38.00 to $45.00 and gave the company an “equal weight” rating in a report on Wednesday, April 10th. Bank of America increased their target price on shares of Synchrony Financial from $43.00 to $44.00 and gave the stock a “neutral” rating in a research note on Thursday, April 25th. Wolfe Research raised Synchrony Financial from an “underperform” rating to an “outperform” rating and upped their price target for the stock from $36.00 to $50.00 in a research note on Thursday, April 4th. Stephens raised their price objective on Synchrony Financial from $40.00 to $46.00 and gave the company an “equal weight” rating in a research note on Wednesday, January 24th. Finally, BMO Capital Markets upped their target price on Synchrony Financial from $40.00 to $41.00 and gave the stock a “market perform” rating in a research report on Thursday, April 25th. One analyst has rated the stock with a sell rating, ten have issued a hold rating and ten have assigned a buy rating to the company’s stock. According to data from MarketBeat, Synchrony Financial has a consensus rating of “Hold” and an average price target of $43.74.

Synchrony Financial Trading Up 1.1 %

Shares of Synchrony Financial stock opened at $46.10 on Friday. The stock has a fifty day moving average price of $42.45 and a 200-day moving average price of $37.79. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.24 and a quick ratio of 1.23. The firm has a market cap of $18.51 billion, a PE ratio of 6.61, a P/E/G ratio of 1.12 and a beta of 1.58. Synchrony Financial has a 1 year low of $26.67 and a 1 year high of $46.72.

Synchrony Financial (NYSE:SYF) last posted its quarterly earnings data 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 return on equity of 16.01% and a net margin of 13.49%. The company had revenue of $5.57 billion for the quarter, compared to analysts’ expectations of $4.44 billion. During the same quarter last year, the business posted $1.35 EPS. Equities research analysts anticipate that Synchrony Financial will post 5.62 EPS for the current year.

Synchrony Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 15th. Investors of record on Monday, May 6th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Friday, May 3rd. This represents a $1.00 annualized dividend and a yield of 2.17%. Synchrony Financial’s payout ratio is 14.35%.

Synchrony Financial announced that its Board of Directors has initiated a share buyback plan on Wednesday, April 24th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to repurchase up to 5.5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

Insider Activity at Synchrony Financial

In related news, insider Brian D. Doubles sold 134,696 shares of the firm’s stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $41.26, for a total transaction of $5,557,556.96. Following the sale, the insider now owns 660,353 shares of the company’s stock, valued at approximately $27,246,164.78. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In related news, insider Curtis Howse sold 31,562 shares of the business’s stock in a transaction on Thursday, May 2nd. The shares were sold at an average price of $45.00, for a total value of $1,420,290.00. Following the sale, the insider now owns 121,042 shares of the company’s stock, valued at $5,446,890. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Brian D. Doubles sold 134,696 shares of the firm’s stock in a transaction 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 transaction, the insider now directly owns 660,353 shares of the company’s stock, valued at $27,246,164.78. The disclosure for this sale can be found here. In the last three months, insiders have sold 172,437 shares of company stock valued at $7,242,432. 0.65% of the stock is owned by insiders.

Institutional Investors Weigh In On Synchrony Financial

Institutional investors have recently added to or reduced their stakes in the business. Raymond James & Associates boosted its holdings in Synchrony Financial by 1.0% in the 3rd quarter. Raymond James & Associates now owns 251,617 shares of the financial services provider’s stock worth $7,692,000 after buying an additional 2,487 shares during the period. Forsta AP Fonden grew its position in shares of Synchrony Financial by 15.5% in the third quarter. Forsta AP Fonden now owns 88,600 shares of the financial services provider’s stock valued at $2,709,000 after purchasing an additional 11,900 shares in the last quarter. Mackenzie Financial Corp raised its stake in shares of Synchrony Financial by 50.2% during the 3rd quarter. Mackenzie Financial Corp now owns 627,708 shares of the financial services provider’s stock valued at $18,266,000 after purchasing an additional 209,929 shares during the period. Strs Ohio lifted its holdings in Synchrony Financial by 8.3% during the 3rd quarter. Strs Ohio now owns 44,466 shares of the financial services provider’s stock worth $1,359,000 after purchasing an additional 3,422 shares in the last quarter. Finally, IFM Investors Pty Ltd lifted its holdings in Synchrony Financial by 18.3% during the 3rd quarter. IFM Investors Pty Ltd now owns 123,473 shares of the financial services provider’s stock worth $3,775,000 after purchasing an additional 19,126 shares in the last quarter. 96.48% of the stock is owned by hedge funds and other institutional investors.

About Synchrony Financial

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.