Synchrony Financial (NYSE:SYF) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Synchrony Financial, with 10 buy ratings and seven holds. The average 12-month price target is $88.25, above the reported share price of $71.45.
• Synchrony reported quarterly EPS of $2.59, beating the $2.14 consensus estimate, while revenue reached $3.72 billion. Analysts expect approximately $9.37 in EPS for the current year.
• The company increased its quarterly dividend from $0.30 to $0.34 per share, representing an annualized dividend of $1.36 and a 1.9% yield; institutional investors own 96.48% of the stock.

Synchrony Financial (NYSE:SYF - Get Free Report) has received an average recommendation of "Moderate Buy" from the seventeen analysts that are presently covering the company, MarketBeat reports. Seven analysts have rated the stock with a hold recommendation and ten have given a buy recommendation to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $88.25.

SYF has been the subject of several research analyst reports. JPMorgan Chase & Co. decreased their target price on Synchrony Financial from $81.00 to $78.00 and set a "neutral" rating for the company in a research report on Monday, July 13th. Royal Bank Of Canada reduced their price target on shares of Synchrony Financial from $85.00 to $80.00 and set a "sector perform" rating on the stock in a research note on Wednesday, July 22nd. Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a report on Friday, July 17th. HSBC boosted their price objective on shares of Synchrony Financial from $93.00 to $97.00 and gave the company a "buy" rating in a research report on Monday, July 13th. Finally, Wells Fargo & Company reduced their target price on shares of Synchrony Financial from $95.00 to $88.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 22nd.

Institutional Investors Weigh In On Synchrony Financial

A number of institutional investors and hedge funds have recently bought and sold shares of the company. World Investment Advisors boosted its position in Synchrony Financial by 0.6% in the 1st quarter. World Investment Advisors now owns 22,874 shares of the financial services provider's stock valued at $1,556,000 after buying an additional 134 shares during the last quarter. WealthTrust Asset Management LLC increased its position in shares of Synchrony Financial by 0.9% during the first quarter. WealthTrust Asset Management LLC now owns 17,452 shares of the financial services provider's stock worth $1,187,000 after acquiring an additional 156 shares during the last quarter. Root Financial Partners LLC increased its position in shares of Synchrony Financial by 15.8% during the fourth quarter. Root Financial Partners LLC now owns 1,333 shares of the financial services provider's stock worth $111,000 after acquiring an additional 182 shares during the last quarter. Parkside Financial Bank & Trust lifted its stake in shares of Synchrony Financial by 13.7% in the second quarter. Parkside Financial Bank & Trust now owns 1,526 shares of the financial services provider's stock worth $116,000 after acquiring an additional 184 shares in the last quarter. Finally, CoreFirst Bank & Trust lifted its stake in shares of Synchrony Financial by 57.8% in the first quarter. CoreFirst Bank & Trust now owns 505 shares of the financial services provider's stock worth $34,000 after acquiring an additional 185 shares in the last quarter. 96.48% of the stock is owned by institutional investors.

Synchrony Financial Trading Up 1.1%

SYF opened at $71.45 on Friday. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.22 and a current ratio of 1.22. The stock's 50 day moving average price is $77.00 and its 200-day moving average price is $73.79. Synchrony Financial has a one year low of $63.08 and a one year high of $88.77. The stock has a market cap of $23.25 billion, a price-to-earnings ratio of 7.32, a P/E/G ratio of 0.67 and a beta of 1.32.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.14 by $0.45. Synchrony Financial had a return on equity of 23.09% and a net margin of 15.44%.The firm had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.72 billion. During the same period last year, the company earned $2.50 EPS. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. On average, equities analysts forecast that Synchrony Financial will post 9.37 EPS for the current year.

Synchrony Financial Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Wednesday, August 5th were paid a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 1.9%. This is an increase from Synchrony Financial's previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Wednesday, August 5th. Synchrony Financial's payout ratio is currently 13.93%.

About Synchrony Financial

Synchrony Financial NYSE: SYF is a consumer financial services company that provides credit products and financing programs through partnerships with retailers, manufacturers, healthcare providers and other businesses. Its offerings are designed to help consumers finance purchases and manage spending across a range of industries.

The company's products include private-label and co-branded credit cards, promotional financing, installment loans and other consumer payment solutions. Synchrony also provides deposit products and other banking services through Synchrony Bank, including savings accounts, certificates of deposit and money market accounts.

Synchrony primarily serves consumers and business partners in the United States, including customers in retail, home, automotive, healthcare, specialty and other markets.

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