Synchrony Financial (NYSE:SYF) Receives Consensus Rating of “Moderate Buy” from Brokerages

Synchrony Financial (NYSE:SYF) has been given a consensus recommendation of “Moderate Buy” by the twenty-one analysts that are presently covering the firm, Marketbeat reports. Eight research analysts have rated the stock with a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. The average 1-year price target among brokers that have covered the stock in the last year is $63.95.

Several equities research analysts have recently weighed in on SYF shares. Cfra Research raised Synchrony Financial to a “hold” rating in a research note on Tuesday, April 22nd. Wall Street Zen raised shares of Synchrony Financial from a “hold” rating to a “buy” rating in a research report on Tuesday, May 20th. Wells Fargo & Company lowered their price target on shares of Synchrony Financial from $70.00 to $65.00 and set an “overweight” rating for the company in a report on Wednesday, April 23rd. Morgan Stanley restated an “equal weight” rating and issued a $44.00 price target (down previously from $82.00) on shares of Synchrony Financial in a research report on Monday, April 7th. Finally, The Goldman Sachs Group reduced their price objective on shares of Synchrony Financial from $82.00 to $70.00 and set a “buy” rating on the stock in a research note on Tuesday, March 18th.

Insider Activity

In related news, insider Jonathan S. Mothner sold 40,639 shares of the business’s stock in a transaction on Monday, May 19th. The shares were sold at an average price of $60.07, for a total value of $2,441,184.73. Following the sale, the insider now owns 146,628 shares in the company, valued at approximately $8,807,943.96. The trade was a 21.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.32% of the company’s stock.

Institutional Trading of Synchrony Financial

Large investors have recently made changes to their positions in the stock. Norges Bank purchased a new stake in Synchrony Financial in the fourth quarter worth about $347,903,000. Nuveen LLC purchased a new stake in Synchrony Financial in the first quarter worth about $175,294,000. Sachem Head Capital Management LP purchased a new stake in Synchrony Financial in the fourth quarter worth about $142,838,000. Price T Rowe Associates Inc. MD lifted its stake in Synchrony Financial by 340.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,512,340 shares of the financial services provider’s stock worth $163,303,000 after acquiring an additional 1,942,573 shares during the period. Finally, Massachusetts Financial Services Co. MA lifted its stake in Synchrony Financial by 755.7% in the first quarter. Massachusetts Financial Services Co. MA now owns 2,179,984 shares of the financial services provider’s stock worth $115,408,000 after acquiring an additional 1,925,217 shares during the period. 96.48% of the stock is owned by hedge funds and other institutional investors.

Synchrony Financial Trading Up 3.2%

Shares of NYSE:SYF opened at $59.29 on Friday. Synchrony Financial has a 12-month low of $40.55 and a 12-month high of $70.93. The stock has a market cap of $22.57 billion, a PE ratio of 6.94, a P/E/G ratio of 0.71 and a beta of 1.42. The business has a 50 day moving average of $53.42 and a 200-day moving average of $59.97. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.01.

Synchrony Financial (NYSE:SYF) last announced its quarterly earnings data on Tuesday, April 22nd. The financial services provider reported $1.89 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.63 by $0.26. Synchrony Financial had a net margin of 15.36% and a return on equity of 18.30%. The firm had revenue of $3.72 billion for the quarter, compared to the consensus estimate of $3.80 billion. As a group, equities research analysts forecast that Synchrony Financial will post 7.67 earnings per share for the current year.

Synchrony Financial Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, May 15th. Shareholders of record on Monday, May 5th were paid a dividend of $0.30 per share. This is a boost from Synchrony Financial’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Monday, May 5th. This represents a $1.20 dividend on an annualized basis and a yield of 2.02%. Synchrony Financial’s dividend payout ratio (DPR) is presently 16.46%.

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.