Synchrony Financial (NYSE:SYF) Holdings Reduced by GDS Wealth Management

GDS Wealth Management cut its stake in Synchrony Financial (NYSE:SYF) by 6.5% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 44,654 shares of the financial services provider’s stock after selling 3,118 shares during the period. GDS Wealth Management’s holdings in Synchrony Financial were worth $1,705,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in SYF. Massmutual Trust Co. FSB ADV boosted its holdings in Synchrony Financial by 44.1% during the fourth quarter. Massmutual Trust Co. FSB ADV now owns 1,274 shares of the financial services provider’s stock worth $49,000 after buying an additional 390 shares in the last quarter. Wetzel Investment Advisors Inc. bought a new stake in Synchrony Financial during the fourth quarter worth approximately $55,000. Private Trust Co. NA boosted its holdings in Synchrony Financial by 13.4% during the fourth quarter. Private Trust Co. NA now owns 2,711 shares of the financial services provider’s stock worth $104,000 after buying an additional 320 shares in the last quarter. Systematic Alpha Investments LLC bought a new stake in Synchrony Financial during the third quarter worth approximately $100,000. Finally, GAMMA Investing LLC bought a new stake in Synchrony Financial during the fourth quarter worth approximately $131,000. 96.48% of the stock is currently owned by institutional investors.

Synchrony Financial Stock Up 1.1 %

Shares of Synchrony Financial stock traded up $0.49 during midday trading on Thursday, reaching $46.10. 3,868,474 shares of the company’s stock traded hands, compared to its average volume of 4,443,251. The company has a market cap of $18.51 billion, a price-to-earnings ratio of 6.61, a price-to-earnings-growth ratio of 1.12 and a beta of 1.58. The company’s 50 day simple moving average is $42.45 and its 200 day simple moving average is $37.79. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.23 and a current ratio of 1.24. Synchrony Financial has a 52 week low of $26.67 and a 52 week high of $46.72.

Synchrony Financial (NYSE:SYF) last released its quarterly earnings results on Wednesday, April 24th. The financial services provider reported $1.18 earnings per share for the quarter, missing analysts’ consensus estimates of $1.37 by ($0.19). The business had revenue of $5.57 billion for the quarter, compared to the consensus estimate of $4.44 billion. Synchrony Financial had a net margin of 13.49% and a return on equity of 16.01%. During the same quarter in the prior year, the business posted $1.35 EPS. Equities analysts expect that Synchrony Financial will post 5.62 earnings per share for the current fiscal year.

Synchrony Financial declared that its board has initiated a stock repurchase 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 reacquire up to 5.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board believes its stock is undervalued.

Synchrony Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 15th. Stockholders of record on Monday, May 6th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, May 3rd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.17%. Synchrony Financial’s dividend payout ratio is currently 14.35%.

Insider Activity

In related news, insider Curtis Howse sold 31,562 shares of Synchrony Financial stock in a transaction on Thursday, May 2nd. The shares were 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 in the company, valued at approximately $5,446,890. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, insider Brian D. Doubles sold 134,696 shares of the business’s stock in a transaction dated Tuesday, March 5th. The shares were sold at an average price of $41.26, for a total transaction of $5,557,556.96. Following the transaction, the insider now owns 660,353 shares in the company, valued at approximately $27,246,164.78. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Curtis Howse sold 31,562 shares of the business’s stock in a transaction dated Thursday, May 2nd. The stock was sold at an average price of $45.00, for a total transaction of $1,420,290.00. Following the transaction, the insider now owns 121,042 shares in the company, valued at approximately $5,446,890. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 172,437 shares of company stock worth $7,242,432. 0.65% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on SYF. Keefe, Bruyette & Woods upgraded shares of Synchrony Financial from a “market perform” rating to an “outperform” rating and raised their target price for the stock from $45.00 to $62.00 in a report on Thursday, May 2nd. JPMorgan Chase & Co. raised their price objective on shares of Synchrony Financial from $42.00 to $46.00 and gave the stock a “neutral” rating in a research note on Thursday, April 25th. Barclays raised their price objective on shares of Synchrony Financial from $36.00 to $37.00 and gave the stock an “equal weight” rating in a research note on Tuesday, April 9th. Evercore ISI raised their price objective on shares of Synchrony Financial from $45.00 to $47.00 and gave the stock an “outperform” rating in a research note on Thursday, March 28th. Finally, Bank of America raised their price objective on shares of Synchrony Financial from $43.00 to $44.00 and gave the stock a “neutral” rating in a research note on Thursday, April 25th. One analyst has rated the stock with a sell rating, ten have issued a hold rating and ten have given a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $43.74.

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.