Shares of Synchrony Financial (NYSE: SYF – Get an assessment) received a consensus “moderate buy” recommendation from the seventeen research firms that cover the stock, reports MarketBeat.com. One equity research analyst rated the stock with a sell rating, two gave the company a hold rating and nine gave the company a buy rating. The 12-month average target price among brokerages that have issued ratings on the stock over the past year is $43.93.
A number of analysts have recently commented on the company. Wells Fargo & Company downgraded Synchrony Financial from an “overweight” rating to an “equally weighted” rating and lowered its price target for the stock from $45.00 to $32.00 in a Wednesday research note July 13. Credit Suisse Group raised its price target on Synchrony Financial from $46.00 to $47.00 and gave the stock an “outperform” rating in a Tuesday, July 19 research note. StockNews.com upgraded Synchrony Financial from a “hold” rating to a “buy” rating in a Monday, September 26 research note. Barclays lowered its price target on Synchrony Financial from $64.00 to $49.00 and set an “overweight” rating for the company in a Monday July 11 research note. Finally, Keefe, Bruyette & Woods lowered their price target on Synchrony Financial from $59.00 to $46.00 in a Monday July 11 research note.
Hedge funds weigh on Synchrony Financial
Several large investors have recently changed their holdings in SYF. SeaCrest Wealth Management LLC purchased a new stake in Synchrony Financial in Q2 for approximately $28,000. Quent Capital LLC increased its stake in Synchrony Financial by 50.1% in the 1st quarter. Quent Capital LLC now owns 1,003 shares of the financial services provider worth $35,000 after buying 335 additional shares in the last quarter. Clear Street Markets LLC increased its stake in Synchrony Financial by 392.0% in the second quarter. Clear Street Markets LLC now owns 1,048 shares of the financial services provider worth $29,000 after buying 835 additional shares in the last quarter. Column Capital Advisors LLC bought a new stake in Synchrony Financial in Q1 worth approximately $37,000. Finally, Harvest Fund Management Co. Ltd bought a new stake in Synchrony Financial in Q2 worth around $31,000. Hedge funds and other institutional investors hold 94.12% of the company’s shares.
Synchrony Financial Stock up 0.2%
Shares of Synchrony Financial opened at $31.75 on Thursday. The company has a debt ratio of 0.96, a quick ratio of 1.21 and a current ratio of 1.21. Synchrony Financial has a 52-week low of $27.22 and a 52-week high of $52.49. The stock has a market capitalization of $15.30 billion, a price/earnings ratio of 4.64, a P/E/G ratio of 0.22 and a beta of 1.55. The company’s 50-day moving average price is $32.67 and its 200-day moving average price is $33.58.
Synchrony Financial (NYSE: SYF – Get an assessment) last released its results on Monday, July 18. The financial services provider reported earnings per share (EPS) of $1.60 for the quarter, beating the consensus estimate of $1.43 by $0.17. Synchrony Financial had a net margin of 22.76% and a return on equity of 27.06%. The company posted revenue of $3.80 billion for the quarter, versus $2.74 billion expected by analysts. In the same quarter last year, the company earned earnings per share of $2.12. Equity research analysts expect Synchrony Financial to post EPS of 5.79 for the current year.
Synchrony Financial increases its dividend
The company also recently declared a quarterly dividend, which was paid on Thursday, August 11. Shareholders of record on Monday August 1 received a dividend of $0.23. This represents an annualized dividend of $0.92 and a dividend yield of 2.90%. The ex-dividend date was Friday, July 29. This is a positive change from Synchrony Financial’s previous quarterly dividend of $0.22. Synchrony Financial’s payout ratio is currently 13.43%.
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 cards, co-branded 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 for retail and commercial customers, as well as deposits through brokerage firms in third-party securities.
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