Synchrony Financial (NYSE:SYF) Trading Down 8.1% – Here’s What Happened

Shares of Synchrony Financial (NYSE:SYF) fell 8.1% on Wednesday . The company traded as low as $70.91 and last traded at $69.40. 3,358,314 shares changed hands during mid-day trading, a decline of 20% from the average daily volume of 4,186,337 shares. The stock had previously closed at $75.52.

Wall Street Analyst Weigh In

A number of research firms have weighed in on SYF. Weiss Ratings reiterated a “buy (b-)” rating on shares of Synchrony Financial in a research report on Monday, April 20th. JPMorgan Chase & Co. dropped their price objective on shares of Synchrony Financial from $84.00 to $73.00 and set a “neutral” rating for the company in a research note on Thursday, April 9th. Loop Capital began coverage on shares of Synchrony Financial in a report on Friday, May 22nd. They issued a “hold” rating and a $81.00 target price on the stock. Barclays increased their price target on shares of Synchrony Financial from $82.00 to $93.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. Finally, UBS Group increased their price target on Synchrony Financial from $77.00 to $84.00 and gave the company a “neutral” rating in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $86.21.

Synchrony Financial Trading Down 7.6%

The stock has a market capitalization of $23.48 billion, a P/E ratio of 7.17, a P/E/G ratio of 0.67 and a beta of 1.32. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.08. The stock’s 50 day moving average price is $73.50 and its 200-day moving average price is $74.07.

Synchrony Financial (NYSE:SYF) last issued its quarterly earnings data on Tuesday, April 21st. The financial services provider reported $2.27 earnings per share for the quarter, beating analysts’ consensus estimates of $2.14 by $0.13. The company had revenue of $3.70 billion for the quarter, compared to the consensus estimate of $3.81 billion. Synchrony Financial had a return on equity of 23.41% and a net margin of 15.80%.The firm’s revenue for the quarter was down 7.4% compared to the same quarter last year. During the same quarter last year, the company earned $1.89 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. As a group, equities research analysts expect that Synchrony Financial will post 9.34 earnings per share for the current year.

Synchrony Financial Dividend Announcement

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

Synchrony Financial declared that its Board of Directors has initiated a share buyback plan on Tuesday, April 21st that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the financial services provider to buy shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Jonathan S. Mothner sold 51,258 shares of Synchrony Financial stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $71.23, for a total transaction of $3,651,107.34. Following the completion of the sale, the insider owned 132,664 shares of the company’s stock, valued at $9,449,656.72. The trade was a 27.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.36% of the company’s stock.

Institutional Trading of Synchrony Financial

Hedge funds have recently added to or reduced their stakes in the company. FWL Investment Management LLC purchased a new position in shares of Synchrony Financial in the 3rd quarter valued at about $26,000. Fideuram Asset Management Ireland dac acquired a new position in Synchrony Financial in the 4th quarter valued at $29,000. Advisors Asset Management Inc. purchased a new position in shares of Synchrony Financial in the fourth quarter worth about $29,000. Palisade Asset Management LLC acquired a new position in shares of Synchrony Financial during the 3rd quarter worth approximately $29,000. Finally, Reflection Asset Management purchased a new stake in shares of Synchrony Financial in the fourth quarter valued at about $31,000. 96.48% of the stock is owned by hedge funds and other institutional investors.

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.