DGS Capital Management LLC Decreases Stake in Synchrony Financial (NYSE:SYF)

DGS Capital Management LLC lowered its holdings in Synchrony Financial (NYSE:SYF) by 1.7% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 16,082 shares of the financial services provider’s stock after selling 286 shares during the quarter. DGS Capital Management LLC’s holdings in Synchrony Financial were worth $693,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently modified their holdings of the company. Future Financial Wealth Managment LLC bought a new stake in Synchrony Financial during the first quarter valued at about $60,000. Kwmg LLC boosted its stake in shares of Synchrony Financial by 0.6% in the first quarter. Kwmg LLC now owns 136,950 shares of the financial services provider’s stock worth $5,905,000 after acquiring an additional 793 shares during the period. Unison Advisors LLC boosted its stake in shares of Synchrony Financial by 1.0% in the first quarter. Unison Advisors LLC now owns 102,786 shares of the financial services provider’s stock worth $4,432,000 after acquiring an additional 972 shares during the period. Gulf International Bank UK Ltd boosted its stake in shares of Synchrony Financial by 0.7% in the first quarter. Gulf International Bank UK Ltd now owns 35,223 shares of the financial services provider’s stock worth $1,518,000 after acquiring an additional 262 shares during the period. Finally, BTC Capital Management Inc. bought a new position in shares of Synchrony Financial in the first quarter worth about $3,540,000. Hedge funds and other institutional investors own 96.48% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on SYF shares. Morgan Stanley restated an “underweight” rating and set a $30.00 price objective on shares of Synchrony Financial in a research report on Wednesday, June 12th. Evercore ISI upped their price objective on Synchrony Financial from $45.00 to $47.00 and gave the company an “outperform” rating in a research report on Thursday, March 28th. Oppenheimer restated a “market perform” rating on shares of Synchrony Financial in a research report on Wednesday, March 6th. BMO Capital Markets upped their price objective on Synchrony Financial from $40.00 to $41.00 and gave the company a “market perform” rating in a research report on Thursday, April 25th. Finally, Wolfe Research upgraded Synchrony Financial from an “underperform” rating to an “outperform” rating and increased their price target for the stock from $36.00 to $50.00 in a report on Thursday, April 4th. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and ten have given a buy rating to the company’s stock. According to MarketBeat.com, Synchrony Financial has a consensus rating of “Hold” and a consensus price target of $44.55.

Insider Buying and Selling

In related news, insider Curtis Howse sold 31,562 shares of Synchrony Financial stock in a transaction dated Thursday, May 2nd. The stock was sold at an average price of $45.00, for a total value of $1,420,290.00. Following the sale, the insider now directly owns 121,042 shares in the company, valued at approximately $5,446,890. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.33% of the stock is currently owned by insiders.

Synchrony Financial Stock Performance

Shares of SYF stock opened at $44.23 on Friday. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.24 and a quick ratio of 1.23. Synchrony Financial has a 1 year low of $27.30 and a 1 year high of $46.72. The business has a fifty day moving average of $43.93 and a 200 day moving average of $41.13. The firm has a market capitalization of $17.76 billion, a price-to-earnings ratio of 6.35, a price-to-earnings-growth ratio of 1.05 and a beta of 1.60.

Synchrony Financial (NYSE:SYF) last announced its quarterly earnings results on Wednesday, April 24th. The financial services provider reported $1.18 earnings per share for the quarter, missing the consensus estimate of $1.37 by ($0.19). Synchrony Financial had a net margin of 13.49% and a return on equity of 16.01%. The business had revenue of $5.57 billion during the quarter, compared to analysts’ expectations of $4.44 billion. During the same quarter in the prior year, the firm earned $1.35 EPS. As a group, research analysts expect that Synchrony Financial will post 5.71 earnings per share for the current year.

Synchrony Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 15th. Investors of record on Monday, May 6th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 2.26%. The ex-dividend date was Friday, May 3rd. Synchrony Financial’s payout ratio is 14.35%.

Synchrony Financial declared that its Board of Directors has authorized a stock buyback program on Wednesday, April 24th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 5.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its stock is undervalued.

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.