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

Shares of Synchrony Financial (NYSE:SYF) have been assigned an average rating of “Moderate Buy” from the twenty-three brokerages that are currently covering the company, Marketbeat Ratings reports. Six investment analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokers that have covered the stock in the last year is $64.98.

Several research analysts have recently commented on SYF shares. Evercore ISI boosted their price objective on Synchrony Financial from $58.00 to $65.00 and gave the stock an “outperform” rating in a report on Wednesday, October 30th. Morgan Stanley raised shares of Synchrony Financial from an “underweight” rating to an “overweight” rating and increased their price target for the stock from $40.00 to $82.00 in a report on Thursday, December 19th. JMP Securities reaffirmed a “market outperform” rating and set a $60.00 price objective on shares of Synchrony Financial in a report on Monday, October 14th. Wells Fargo & Company raised Synchrony Financial from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $60.00 to $85.00 in a research note on Tuesday, December 3rd. Finally, Deutsche Bank Aktiengesellschaft lifted their price target on Synchrony Financial from $58.00 to $68.00 and gave the stock a “buy” rating in a research note on Thursday, October 17th.

Synchrony Financial Stock Performance

NYSE SYF opened at $66.64 on Wednesday. The company’s 50 day simple moving average is $65.15 and its two-hundred day simple moving average is $54.96. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.25 and a quick ratio of 1.25. Synchrony Financial has a 1 year low of $35.29 and a 1 year high of $69.39. The stock has a market capitalization of $25.95 billion, a PE ratio of 8.70, a P/E/G ratio of 0.82 and a beta of 1.64.

Synchrony Financial (NYSE:SYF) last issued its quarterly earnings data on Wednesday, October 16th. The financial services provider reported $1.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.77 by $0.17. Synchrony Financial had a return on equity of 16.64% and a net margin of 13.98%. The company had revenue of $3.81 billion for the quarter, compared to the consensus estimate of $3.76 billion. During the same quarter last year, the business posted $1.48 earnings per share. The firm’s revenue was up 9.8% compared to the same quarter last year. Analysts predict that Synchrony Financial will post 6.51 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, November 15th. Shareholders of record on Monday, November 4th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.50%. The ex-dividend date of this dividend was Monday, November 4th. Synchrony Financial’s dividend payout ratio (DPR) is currently 13.05%.

Insider Transactions at Synchrony Financial

In other news, insider Curtis Howse sold 21,934 shares of Synchrony Financial stock in a transaction dated Friday, November 1st. The shares were sold at an average price of $55.13, for a total transaction of $1,209,221.42. Following the sale, the insider now owns 99,743 shares of the company’s stock, valued at approximately $5,498,831.59. The trade was a 18.03 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Jonathan S. Mothner sold 34,163 shares of the stock in a transaction dated Friday, November 15th. The stock was sold at an average price of $64.99, for a total transaction of $2,220,253.37. Following the completion of the transaction, the insider now directly owns 127,587 shares of the company’s stock, valued at approximately $8,291,879.13. The trade was a 21.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Synchrony Financial

Institutional investors and hedge funds have recently modified their holdings of the stock. Larson Financial Group LLC increased its stake in Synchrony Financial by 92.7% during the 3rd quarter. Larson Financial Group LLC now owns 607 shares of the financial services provider’s stock valued at $30,000 after purchasing an additional 292 shares in the last quarter. Altshuler Shaham Ltd purchased a new position in Synchrony Financial in the 2nd quarter worth approximately $31,000. Ashton Thomas Private Wealth LLC bought a new position in Synchrony Financial in the 2nd quarter valued at approximately $39,000. Quarry LP lifted its position in Synchrony Financial by 301.3% in the 3rd quarter. Quarry LP now owns 899 shares of the financial services provider’s stock valued at $45,000 after acquiring an additional 675 shares in the last quarter. Finally, Capital Performance Advisors LLP purchased a new stake in Synchrony Financial during the 3rd quarter valued at $50,000. 96.48% of the stock is currently owned by 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.