Synchrony Financial (NYSE:SYF) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Synchrony Financial has a “Moderate Buy” consensus rating from 19 analysts, with 12 recommending buy and seven recommending hold. The average 12-month price target is $87.78, above the reported trading price of $78.21.
• The company exceeded quarterly earnings expectations, reporting $2.59 in EPS versus the $2.14 consensus on $3.72 billion in revenue. Analysts project full-year EPS of approximately $9.38.
• Synchrony raised its quarterly dividend to $0.34 per share, equivalent to $1.36 annually and a 1.7% yield; institutional investors own 96.48% of the company’s stock.

Shares of Synchrony Financial (NYSE:SYF - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the nineteen analysts that are presently covering the company, Marketbeat.com reports. Seven equities research analysts have rated the stock with a hold recommendation and twelve have issued a buy recommendation on the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $87.7778.

Several equities research analysts recently issued reports on SYF shares. Weiss Ratings reissued a "buy (b-)" rating on shares of Synchrony Financial in a report on Friday, July 17th. TD Cowen increased their price objective on shares of Synchrony Financial from $89.00 to $90.00 and gave the stock a "buy" rating in a research note on Tuesday, July 7th. UBS Group raised their price objective on shares of Synchrony Financial from $84.00 to $87.00 and gave the company a "neutral" rating in a research report on Monday, August 3rd. Robert W. Baird lifted their target price on shares of Synchrony Financial from $86.00 to $90.00 and gave the company an "outperform" rating in a research note on Wednesday, July 22nd. Finally, Wells Fargo & Company dropped their target price on shares of Synchrony Financial from $95.00 to $88.00 and set an "overweight" rating for the company in a report on Wednesday, July 22nd.

Institutional Trading of Synchrony Financial

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. FWL Investment Management LLC bought a new position in Synchrony Financial in the 3rd quarter worth approximately $26,000. Fideuram Asset Management Ireland dac bought a new stake in shares of Synchrony Financial during the fourth quarter valued at approximately $29,000. Compass Financial Management LLC bought a new stake in shares of Synchrony Financial during the second quarter valued at approximately $29,000. Advisors Asset Management Inc. purchased a new position in shares of Synchrony Financial in the fourth quarter worth $29,000. Finally, Palisade Asset Management LLC purchased a new position in shares of Synchrony Financial in the third quarter worth $29,000. Institutional investors own 96.48% of the company's stock.

Synchrony Financial Trading Up 0.2%

NYSE:SYF opened at $78.21 on Monday. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.22 and a quick ratio of 1.22. The firm has a market capitalization of $25.45 billion, a price-to-earnings ratio of 8.01, a price-to-earnings-growth ratio of 0.71 and a beta of 1.32. Synchrony Financial has a one year low of $63.08 and a one year high of $88.77. The business has a fifty day moving average price of $76.64 and a 200-day moving average price of $73.11.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.59 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 business had revenue of $3.72 billion during the quarter, compared to analysts' expectations of $3.72 billion. During the same quarter in the prior year, the business posted $2.50 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. Sell-side analysts forecast that Synchrony Financial will post 9.38 EPS for the current year.

Synchrony Financial Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Wednesday, August 5th were paid a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 1.7%. This is a positive change from Synchrony Financial's previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Wednesday, August 5th. Synchrony Financial's dividend payout ratio is currently 13.93%.

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.

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