Synchrony Financial (NYSE:SYF) Upgraded at Compass Point

Compass Point upgraded shares of Synchrony Financial (NYSE:SYF) from a neutral rating to a buy rating in a research report released on Wednesday morning, Marketbeat Ratings reports. The brokerage currently has $96.00 price target on the financial services provider’s stock.

Other equities analysts have also issued reports about the stock. Wells Fargo & Company increased their price target on shares of Synchrony Financial from $95.00 to $100.00 and gave the company an “overweight” rating in a research note on Monday, January 5th. Wall Street Zen raised shares of Synchrony Financial from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Barclays boosted their price target on shares of Synchrony Financial from $86.00 to $101.00 and gave the company an “overweight” rating in a research report on Tuesday, January 6th. TD Cowen raised their price objective on Synchrony Financial from $91.00 to $100.00 and gave the stock a “buy” rating in a report on Thursday, January 8th. Finally, Hsbc Global Res upgraded Synchrony Financial from a “hold” rating to a “strong-buy” rating in a research report on Thursday, October 9th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, Synchrony Financial currently has an average rating of “Moderate Buy” and an average target price of $87.05.

Synchrony Financial Price Performance

Synchrony Financial stock opened at $72.63 on Wednesday. The stock has a market cap of $26.16 billion, a P/E ratio of 7.82, a price-to-earnings-growth ratio of 0.51 and a beta of 1.43. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.98. The company has a fifty day simple moving average of $80.96 and a 200-day simple moving average of $75.64. Synchrony Financial has a 12-month low of $40.54 and a 12-month high of $88.77.

Synchrony Financial (NYSE:SYF) last released its quarterly earnings data on Tuesday, January 27th. The financial services provider reported $2.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.02 by $0.16. Synchrony Financial had a return on equity of 23.07% and a net margin of 15.72%.The business had revenue of $3.79 billion during the quarter, compared to analysts’ expectations of $3.84 billion. During the same period in the prior year, the firm posted $1.91 EPS. The business’s quarterly revenue was down .2% compared to the same quarter last year. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Equities analysts expect that Synchrony Financial will post 7.67 EPS for the current fiscal year.

Synchrony Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 17th. Investors of record on Friday, February 6th will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 1.7%. The ex-dividend date is Friday, February 6th. Synchrony Financial’s payout ratio is 12.92%.

Synchrony Financial declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, October 15th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 3.7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Jonathan S. Mothner sold 32,000 shares of the stock in a transaction on Monday, November 17th. The stock was sold at an average price of $72.80, for a total transaction of $2,329,600.00. Following the completion of the sale, the insider directly owned 127,100 shares of the company’s stock, valued at $9,252,880. This trade represents a 20.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Curtis Howse sold 12,086 shares of the business’s stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $74.02, for a total transaction of $894,605.72. Following the completion of the transaction, the insider directly owned 108,271 shares in the company, valued at $8,014,219.42. This represents a 10.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 55,075 shares of company stock worth $4,036,892 over the last three months. 0.32% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Donoghue Forlines LLC purchased a new position in shares of Synchrony Financial in the 3rd quarter valued at about $2,064,000. Brandywine Global Investment Management LLC grew its position in Synchrony Financial by 56.5% during the second quarter. Brandywine Global Investment Management LLC now owns 370,383 shares of the financial services provider’s stock worth $24,719,000 after buying an additional 133,780 shares during the period. Nordea Investment Management AB increased its holdings in Synchrony Financial by 7.9% in the third quarter. Nordea Investment Management AB now owns 4,542,336 shares of the financial services provider’s stock valued at $318,236,000 after buying an additional 333,093 shares in the last quarter. Ritholtz Wealth Management increased its holdings in Synchrony Financial by 73.8% in the third quarter. Ritholtz Wealth Management now owns 77,220 shares of the financial services provider’s stock valued at $5,486,000 after buying an additional 32,802 shares in the last quarter. Finally, AQR Capital Management LLC lifted its position in shares of Synchrony Financial by 6.1% during the 2nd quarter. AQR Capital Management LLC now owns 4,266,366 shares of the financial services provider’s stock valued at $284,737,000 after acquiring an additional 245,527 shares during the period. Institutional investors and hedge funds own 96.48% of the company’s stock.

About Synchrony Financial

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.