Synchrony Financial (NYSE:SYF) Sets New 1-Year High – Still a Buy?

Synchrony Financial (NYSE:SYF) hit a new 52-week high on Friday . The company traded as high as $73.94 and last traded at $74.07, with a volume of 374869 shares. The stock had previously closed at $71.23.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. Wall Street Zen lowered shares of Synchrony Financial from a “buy” rating to a “hold” rating in a research report on Friday. Truist Financial upped their price objective on Synchrony Financial from $68.00 to $76.00 and gave the stock a “hold” rating in a report on Thursday, July 24th. BTIG Research raised Synchrony Financial from a “neutral” rating to a “buy” rating and set a $100.00 target price for the company in a research note on Monday, July 14th. Barclays dropped their target price on Synchrony Financial from $81.00 to $80.00 and set an “overweight” rating for the company in a research report on Wednesday, July 23rd. Finally, JPMorgan Chase & Co. upped their price target on Synchrony Financial from $52.00 to $80.00 and gave the company an “overweight” rating in a research note on Friday, July 11th. Twelve equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Synchrony Financial currently has a consensus rating of “Moderate Buy” and an average target price of $74.05.

Synchrony Financial Stock Performance

The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.02. The company has a market cap of $27.22 billion, a price-to-earnings ratio of 8.88, a P/E/G ratio of 0.74 and a beta of 1.49. The stock has a 50 day moving average price of $69.01 and a two-hundred day moving average price of $60.39.

Synchrony Financial (NYSE:SYF) last released its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $2.50 EPS for the quarter, beating analysts’ consensus estimates of $1.72 by $0.78. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%.The business had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.71 billion. During the same quarter in the prior year, the company posted $1.55 earnings per share. The firm’s revenue was down 1.8% on a year-over-year basis. Synchrony Financial has set its FY 2025 guidance at EPS. Analysts predict that Synchrony Financial will post 7.67 EPS for the current year.

Synchrony Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Tuesday, August 5th were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Tuesday, August 5th. Synchrony Financial’s dividend payout ratio (DPR) is currently 14.56%.

Insider Buying and Selling

In related news, insider Darrell Owens sold 600 shares of Synchrony Financial stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $67.95, for a total transaction of $40,770.00. Following the transaction, the insider owned 21,372 shares of the company’s stock, valued at $1,452,227.40. This trade represents a 2.73% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Curtis Howse sold 11,380 shares of the company’s stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $65.00, for a total transaction of $739,700.00. Following the completion of the sale, the insider directly owned 108,062 shares of the company’s stock, valued at $7,024,030. The trade was a 9.53% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 20,494 shares of company stock valued at $1,376,450 in the last 90 days. 0.32% of the stock is owned by insiders.

Institutional Trading of Synchrony Financial

Several hedge funds have recently added to or reduced their stakes in SYF. Parkside Financial Bank & Trust lifted its stake in Synchrony Financial by 15.1% in the second quarter. Parkside Financial Bank & Trust now owns 1,106 shares of the financial services provider’s stock valued at $74,000 after buying an additional 145 shares in the last quarter. Smartleaf Asset Management LLC lifted its position in Synchrony Financial by 3.1% in the 2nd quarter. Smartleaf Asset Management LLC now owns 5,027 shares of the financial services provider’s stock valued at $333,000 after acquiring an additional 149 shares in the last quarter. Blue Trust Inc. lifted its position in Synchrony Financial by 5.5% in the 2nd quarter. Blue Trust Inc. now owns 3,168 shares of the financial services provider’s stock valued at $211,000 after acquiring an additional 166 shares in the last quarter. MAI Capital Management boosted its stake in Synchrony Financial by 36.3% in the 1st quarter. MAI Capital Management now owns 627 shares of the financial services provider’s stock worth $33,000 after purchasing an additional 167 shares during the period. Finally, Steward Partners Investment Advisory LLC increased its holdings in Synchrony Financial by 6.0% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 3,240 shares of the financial services provider’s stock worth $216,000 after purchasing an additional 183 shares in the last quarter. Institutional investors and hedge funds own 96.48% of the company’s stock.

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.