BTIG Research Reiterates Buy Rating for Synchrony Financial (NYSE:SYF)

Key Points

• BTIG Research has reiterated a buy rating for Synchrony Financial (NYSE:SYF) with a target price of $100.00, indicating a potential upside of 38.43% from the current trading price.
• Synchrony Financial reported $2.86 EPS for the quarter, exceeding the consensus estimate of $2.22, along with revenue of $3.82 billion, which was slightly above expectations.
• The company announced a $1.00 billion stock buyback plan to repurchase up to 3.7% of its shares, suggesting the board believes its stock is undervalued.

Synchrony Financial (NYSE:SYF - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at BTIG Research in a research report issued to clients and investors on Thursday,Benzinga reports. They presently have a $100.00 target price on the financial services provider's stock. BTIG Research's price objective would indicate a potential upside of 38.43% from the company's previous close.

Several other equities research analysts have also recently commented on the stock. Wells Fargo & Company lifted their price target on shares of Synchrony Financial from $75.00 to $80.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 23rd. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $75.00 price target (down previously from $80.00) on shares of Synchrony Financial in a research note on Tuesday, October 7th. Morgan Stanley lifted their price target on shares of Synchrony Financial from $72.00 to $82.00 and gave the company an "equal weight" rating in a research note on Monday, September 29th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Synchrony Financial in a research note on Wednesday, October 8th. Finally, Bank of America boosted their price objective on shares of Synchrony Financial from $75.00 to $80.00 and gave the stock a "buy" rating in a research report on Thursday, September 11th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $77.60.

Synchrony Financial Price Performance

Shares of Synchrony Financial stock opened at $72.24 on Thursday. The firm has a fifty day moving average price of $73.35 and a two-hundred day moving average price of $64.44. The company has a market cap of $26.88 billion, a PE ratio of 8.77, a price-to-earnings-growth ratio of 0.72 and a beta of 1.50. Synchrony Financial has a fifty-two week low of $40.54 and a fifty-two week high of $77.41. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.24 and a quick ratio of 1.24.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its quarterly earnings data on Wednesday, October 15th. The financial services provider reported $2.86 EPS for the quarter, topping analysts' consensus estimates of $2.22 by $0.64. The company had revenue of $3.82 billion during the quarter, compared to the consensus estimate of $3.79 billion. Synchrony Financial had a net margin of 14.43% and a return on equity of 21.34%. The firm's revenue for the quarter was up .2% compared to the same quarter last year. During the same period last year, the firm earned $1.94 EPS. Synchrony Financial has set its FY 2025 guidance at EPS. Analysts expect that Synchrony Financial will post 7.67 EPS for the current year.

Synchrony Financial declared that its board has approved a stock buyback 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 typically an indication that the company's board of directors believes its shares are undervalued.

Insider Transactions at Synchrony Financial

In related news, insider Brian J. Sr. Wenzel sold 8,514 shares of the company's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $70.00, for a total value of $595,980.00. Following the transaction, the insider directly owned 68,588 shares in the company, valued at approximately $4,801,160. This represents a 11.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Darrell Owens sold 600 shares of the stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $67.95, for a total transaction of $40,770.00. Following the sale, the insider owned 21,372 shares in the company, valued at $1,452,227.40. The trade was a 2.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.32% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SYF. CWM LLC raised its holdings in Synchrony Financial by 50.0% during the 3rd quarter. CWM LLC now owns 58,511 shares of the financial services provider's stock worth $4,157,000 after purchasing an additional 19,513 shares during the last quarter. Strid Group LLC increased its stake in shares of Synchrony Financial by 14.1% in the 3rd quarter. Strid Group LLC now owns 21,672 shares of the financial services provider's stock valued at $1,540,000 after acquiring an additional 2,685 shares in the last quarter. Harbor Capital Advisors Inc. increased its stake in shares of Synchrony Financial by 16.3% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 10,701 shares of the financial services provider's stock valued at $760,000 after acquiring an additional 1,500 shares in the last quarter. Global X Japan Co. Ltd. increased its stake in Synchrony Financial by 5,530.7% during the 3rd quarter. Global X Japan Co. Ltd. now owns 5,687 shares of the financial services provider's stock valued at $404,000 after purchasing an additional 5,586 shares in the last quarter. Finally, DAVENPORT & Co LLC increased its stake in Synchrony Financial by 0.4% during the 3rd quarter. DAVENPORT & Co LLC now owns 191,890 shares of the financial services provider's stock valued at $13,634,000 after purchasing an additional 701 shares in the last quarter. Institutional investors 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.

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