Synchrony Financial (NYSE:SYF) Downgraded to Hold at StockNews.com

StockNews.com downgraded shares of Synchrony Financial (NYSE:SYF) from a buy rating to a hold rating in a report released on Tuesday.

Several other equities analysts have also recently commented on the company. Wells Fargo & Company upped their price target on Synchrony Financial from $38.00 to $45.00 and gave the company an equal weight rating in a report on Wednesday, April 10th. Oppenheimer reaffirmed a market perform rating on shares of Synchrony Financial in a report on Wednesday, March 6th. BMO Capital Markets upped their price target on Synchrony Financial from $40.00 to $41.00 and gave the company a market perform rating in a report on Thursday, April 25th. BTIG Research began coverage on Synchrony Financial in a report on Friday, June 7th. They issued a buy rating and a $60.00 price target for the company. Finally, Morgan Stanley reiterated an underweight rating and issued a $30.00 price objective on shares of Synchrony Financial in a research note on Wednesday, June 12th. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating and eleven have given a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of Hold and a consensus price target of $45.10.

Synchrony Financial Price Performance

NYSE SYF opened at $47.19 on Tuesday. Synchrony Financial has a twelve month low of $27.30 and a twelve month high of $47.24. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.23 and a current ratio of 1.24. The stock has a market capitalization of $18.95 billion, a PE ratio of 6.77, a P/E/G ratio of 1.05 and a beta of 1.60. The stock has a 50-day simple moving average of $44.11 and a 200 day simple moving average of $41.23.

Synchrony Financial (NYSE:SYF) last posted its quarterly earnings data 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 return on equity of 16.01% and a net margin of 13.49%. The business had revenue of $5.57 billion for the quarter, compared to analyst estimates of $4.44 billion. During the same period in the prior year, the firm posted $1.35 EPS. Research analysts anticipate that Synchrony Financial will post 5.71 EPS for the current year.

Synchrony Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 15th. Shareholders of record on Monday, May 6th were given a $0.25 dividend. The ex-dividend date was Friday, May 3rd. This represents a $1.00 dividend on an annualized basis and a yield of 2.12%. Synchrony Financial’s payout ratio is 14.35%.

Synchrony Financial declared that its Board of Directors has approved 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 purchase 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 shares are undervalued.

Insider Buying and Selling at Synchrony Financial

In other news, insider Curtis Howse sold 31,562 shares of the stock in a transaction on 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 transaction, the insider now owns 121,042 shares of the company’s stock, valued at approximately $5,446,890. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in SYF. Boston Partners increased its holdings in Synchrony Financial by 66.6% during the 1st quarter. Boston Partners now owns 6,374,260 shares of the financial services provider’s stock worth $274,892,000 after purchasing an additional 2,548,180 shares in the last quarter. Assenagon Asset Management S.A. lifted its position in Synchrony Financial by 995.4% during the first quarter. Assenagon Asset Management S.A. now owns 5,599,443 shares of the financial services provider’s stock worth $241,448,000 after acquiring an additional 5,088,262 shares during the last quarter. Northern Trust Corp lifted its position in Synchrony Financial by 3.7% during the third quarter. Northern Trust Corp now owns 4,973,509 shares of the financial services provider’s stock worth $152,040,000 after acquiring an additional 178,344 shares during the last quarter. Norges Bank acquired a new stake in Synchrony Financial during the fourth quarter worth approximately $182,739,000. Finally, Ameriprise Financial Inc. lifted its position in Synchrony Financial by 4.1% during the third quarter. Ameriprise Financial Inc. now owns 3,707,427 shares of the financial services provider’s stock worth $113,336,000 after acquiring an additional 145,466 shares during the last quarter. Institutional investors and hedge funds own 96.48% of the company’s stock.

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.