Investors Buy Large Volume of Call Options on Synchrony Financial (NYSE:SYF)

Synchrony Financial (NYSE:SYF) was the recipient of some unusual options trading activity on Tuesday. Investors purchased 5,422 call options on the stock. This is an increase of approximately 74% compared to the typical daily volume of 3,114 call options.

Wall Street Analyst Weigh In

SYF has been the subject of a number of recent research reports. Morgan Stanley restated an “equal weight” rating and issued a $44.00 price objective (down previously from $82.00) on shares of Synchrony Financial in a research note on Monday. Wells Fargo & Company cut their price target on shares of Synchrony Financial from $85.00 to $70.00 and set an “overweight” rating for the company in a research note on Thursday, April 3rd. Barclays raised Synchrony Financial from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $59.00 to $79.00 in a report on Monday, January 6th. Royal Bank of Canada raised their target price on Synchrony Financial from $70.00 to $73.00 and gave the stock a “sector perform” rating in a research report on Wednesday, January 29th. Finally, UBS Group upped their price target on Synchrony Financial from $58.00 to $66.00 and gave the company a “neutral” rating in a research report on Monday, January 13th. Eight analysts have rated the stock with a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, Synchrony Financial presently has a consensus rating of “Moderate Buy” and a consensus price target of $65.11.

Synchrony Financial Price Performance

SYF opened at $43.78 on Wednesday. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.24 and a quick ratio of 1.24. The stock has a market capitalization of $17.02 billion, a P/E ratio of 5.13, a price-to-earnings-growth ratio of 0.71 and a beta of 1.45. The company’s 50 day simple moving average is $57.75 and its 200-day simple moving average is $60.50. Synchrony Financial has a one year low of $39.67 and a one year high of $70.93.

Synchrony Financial (NYSE:SYF) last announced its quarterly earnings data on Tuesday, January 28th. The financial services provider reported $1.91 EPS for the quarter, beating analysts’ consensus estimates of $1.89 by $0.02. Synchrony Financial had a return on equity of 18.30% and a net margin of 15.36%. Sell-side analysts anticipate that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, February 18th. Investors of record on Monday, February 3rd were given a $0.25 dividend. The ex-dividend date was Monday, February 3rd. This represents a $1.00 dividend on an annualized basis and a yield of 2.28%. Synchrony Financial’s payout ratio is 11.71%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. New Wave Wealth Advisors LLC acquired a new position in Synchrony Financial in the fourth quarter valued at approximately $452,000. National Bank of Canada FI lifted its stake in shares of Synchrony Financial by 119.0% in the 3rd quarter. National Bank of Canada FI now owns 243,040 shares of the financial services provider’s stock valued at $12,123,000 after purchasing an additional 132,047 shares during the period. Asset Management One Co. Ltd. boosted its position in shares of Synchrony Financial by 7.5% in the 4th quarter. Asset Management One Co. Ltd. now owns 178,811 shares of the financial services provider’s stock worth $11,787,000 after purchasing an additional 12,492 shares during the last quarter. Brophy Wealth Management LLC acquired a new stake in shares of Synchrony Financial during the third quarter worth $544,000. Finally, Summit Trail Advisors LLC bought a new stake in Synchrony Financial in the fourth quarter valued at about $423,000. 96.48% of the stock is currently owned by institutional investors and hedge funds.

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.