Synchrony Financial (NYSE:SYF) Given Average Rating of “Moderate Buy” by Brokerages

Synchrony Financial (NYSE:SYF) has been given a consensus recommendation of “Moderate Buy” by the twenty brokerages that are currently covering the stock, MarketBeat Ratings reports. Eight research analysts have rated the stock with a hold recommendation, eleven have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $86.2105.

SYF has been the subject of a number of research reports. Barclays boosted their price target on shares of Synchrony Financial from $82.00 to $93.00 and gave the company an “overweight” rating in a research report on Wednesday, April 22nd. Wells Fargo & Company reduced their target price on Synchrony Financial from $100.00 to $95.00 and set an “overweight” rating for the company in a report on Thursday, April 9th. UBS Group upped their target price on Synchrony Financial from $77.00 to $84.00 and gave the company a “neutral” rating in a research report on Tuesday, July 7th. JPMorgan Chase & Co. dropped their price target on Synchrony Financial from $84.00 to $73.00 and set a “neutral” rating on the stock in a research note on Thursday, April 9th. Finally, TD Cowen lifted their price target on Synchrony Financial from $89.00 to $90.00 and gave the stock a “buy” rating in a research report on Tuesday, July 7th.

Synchrony Financial Stock Up 1.3%

SYF stock traded up $0.92 during midday trading on Friday, reaching $72.49. 2,903,822 shares of the company were exchanged, compared to its average volume of 3,499,538. The company has a market cap of $24.38 billion, a price-to-earnings ratio of 7.50, a price-to-earnings-growth ratio of 0.64 and a beta of 1.32. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.24 and a current ratio of 1.24. Synchrony Financial has a 1-year low of $63.08 and a 1-year high of $88.77. The stock’s 50-day simple moving average is $73.17 and its 200 day simple moving average is $73.86.

Synchrony Financial (NYSE:SYF) last issued its earnings results on Tuesday, April 21st. The financial services provider reported $2.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.14 by $0.13. The business had revenue of $3.70 billion during the quarter, compared to analysts’ expectations of $3.81 billion. Synchrony Financial had a net margin of 15.80% and a return on equity of 23.41%. The company’s revenue for the quarter was down 7.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.89 EPS. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. On average, equities analysts forecast that Synchrony Financial will post 9.33 earnings per share for the current year.

Synchrony Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Tuesday, May 5th were given a dividend of $0.30 per share. The ex-dividend date was Tuesday, May 5th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.7%. Synchrony Financial’s dividend payout ratio (DPR) is 12.41%.

Synchrony Financial declared that its Board of Directors has approved a share repurchase plan on Tuesday, April 21st that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the financial services provider to purchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Jonathan S. Mothner sold 51,258 shares of the company’s stock in a transaction on Friday, May 15th. The shares were sold at an average price of $71.23, for a total value of $3,651,107.34. Following the completion of the sale, the insider owned 132,664 shares in the company, valued at $9,449,656.72. This represents a 27.87% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Advisors Asset Management Inc. acquired a new stake in shares of Synchrony Financial during the fourth quarter worth about $29,000. Fideuram Asset Management Ireland dac acquired a new stake in shares of Synchrony Financial during the fourth quarter worth $29,000. FWL Investment Management LLC purchased a new position in Synchrony Financial in the 3rd quarter valued at $26,000. Reflection Asset Management purchased a new position in Synchrony Financial in the 4th quarter valued at $31,000. Finally, Palisade Asset Management LLC acquired a new position in Synchrony Financial in the 3rd quarter valued at $29,000. 96.48% of the stock is currently owned by institutional investors and hedge funds.

Synchrony Financial Company Profile

Synchrony Financial (NYSE: SYF) is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite.

Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants’ checkout experiences.