Synchrony Financial (NYSE:SYF) Issues Quarterly Earnings Results

Synchrony Financial (NYSE:SYF) issued its quarterly earnings results on Wednesday. The financial services provider reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.35 by $0.20, RTT News reports. Synchrony Financial had a net margin of 13.52% and a return on equity of 16.06%. The business had revenue of $5.58 billion for the quarter, compared to analysts’ expectations of $4.44 billion. During the same quarter last year, the company posted $1.32 EPS. Synchrony Financial updated its FY 2024 guidance to 7.600-7.800 EPS.

Synchrony Financial Trading Down 2.7 %

SYF stock opened at $50.83 on Friday. The firm has a fifty day moving average price of $45.30 and a 200 day moving average price of $42.33. Synchrony Financial has a fifty-two week low of $27.30 and a fifty-two week high of $52.67. The firm has a market cap of $20.41 billion, a PE ratio of 7.29, a price-to-earnings-growth ratio of 1.21 and a beta of 1.63. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.23 and a current ratio of 1.23.

Synchrony Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 15th. Shareholders of record on Monday, May 6th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.97%. The ex-dividend date was Friday, May 3rd. Synchrony Financial’s payout ratio is 14.35%.

Insider Activity at Synchrony Financial

In other Synchrony Financial 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 completion of the transaction, the insider now directly owns 121,042 shares of the company’s stock, valued at approximately $5,446,890. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 0.33% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

SYF has been the topic of several analyst reports. BMO Capital Markets lowered their target price on Synchrony Financial from $42.00 to $41.00 and set a “market perform” rating on the stock in a research report on Thursday. BTIG Research began coverage on Synchrony Financial in a research report on Friday, June 7th. They set a “buy” rating and a $60.00 price objective on the stock. The Goldman Sachs Group increased their target price on shares of Synchrony Financial from $49.00 to $56.00 and gave the stock a “buy” rating in a report on Thursday. TD Cowen raised their target price on shares of Synchrony Financial from $49.00 to $51.00 and gave the stock a “buy” rating in a research note on Thursday, April 25th. Finally, JPMorgan Chase & Co. upped their price target on shares of Synchrony Financial from $46.00 to $52.00 and gave the stock a “neutral” rating in a research report on Monday, July 8th. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, Synchrony Financial presently has a consensus rating of “Moderate Buy” and an average target price of $49.91.

Synchrony Financial declared that its board has approved a share repurchase plan on Wednesday, April 24th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the financial services provider to purchase up to 5.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Synchrony Financial Company Profile

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.