Synchrony Financial (NYSE:SYF) Stock Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analyst sentiment is moderately positive: Of 19 analysts covering Synchrony Financial, 10 recommend buying and nine recommend holding; the average 12-month price target is $87.78.
• Synchrony reported quarterly earnings of $2.68 per share, beating the $2.42 consensus estimate, and revenue of $3.82 billion, slightly above expectations.
• The company announced a quarterly dividend of $0.34 per share, equivalent to an annualized yield of 1.9% at the share price cited in the article.

Shares of Synchrony Financial (NYSE:SYF - Get Free Report) have been given a consensus rating of "Moderate Buy" by the nineteen analysts that are covering the firm, Marketbeat Ratings reports. Nine equities research analysts have rated the stock with a hold recommendation and ten have given a buy recommendation to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $87.78.

Several research firms recently issued reports on SYF. Jefferies Financial Group reaffirmed a "buy" rating and set a $103.00 price objective on shares of Synchrony Financial in a report on Tuesday, October 20th. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Synchrony Financial in a report on Tuesday, October 20th. Barclays boosted their target price on shares of Synchrony Financial from $93.00 to $94.00 and gave the stock an "overweight" rating in a research report on Wednesday, October 21st. Weiss Ratings upgraded shares of Synchrony Financial from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. Finally, Wolfe Research raised their price target on Synchrony Financial from $85.00 to $90.00 and gave the company an "outperform" rating in a research report on Tuesday, August 25th.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Synchrony Financial in the second quarter worth $22,798,000. Bank of America Corp DE acquired a new stake in Synchrony Financial during the second quarter worth $1,122,961,000. Raiffeisen Bank International AG boosted its stake in Synchrony Financial by 7,984.0% during the second quarter. Raiffeisen Bank International AG now owns 23,282 shares of the financial services provider's stock worth $1,825,000 after buying an additional 22,994 shares in the last quarter. Basswood Capital Management L.L.C. bought a new stake in Synchrony Financial in the 2nd quarter valued at $45,734,000. Finally, Munich Reinsurance Co Stock Corp in Munich increased its holdings in Synchrony Financial by 243.6% in the 2nd quarter. Munich Reinsurance Co Stock Corp in Munich now owns 258,224 shares of the financial services provider's stock valued at $19,638,000 after buying an additional 183,076 shares during the period. 96.48% of the stock is owned by institutional investors.

Synchrony Financial Stock Up 0.8%

Shares of SYF stock opened at $72.26 on Friday. The stock's 50 day simple moving average is $73.93 and its 200 day simple moving average is $73.46. Synchrony Financial has a twelve month low of $63.08 and a twelve month high of $88.77. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.23 and a current ratio of 1.23. The company has a market capitalization of $22.50 billion, a price-to-earnings ratio of 7.54, a PEG ratio of 0.88 and a beta of 1.40.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its quarterly earnings results on Tuesday, October 20th. The financial services provider reported $2.68 EPS for the quarter, beating the consensus estimate of $2.42 by $0.26. Synchrony Financial had a return on equity of 22.26% and a net margin of 14.59%. The company had revenue of $3.82 billion for the quarter, compared to the consensus estimate of $3.81 billion. During the same quarter last year, the company posted $2.86 earnings per share. As a group, research analysts predict that Synchrony Financial will post 9.61 EPS for the current year.

Synchrony Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Investors of record on Thursday, November 5th will be paid a dividend of $0.34 per share. The ex-dividend date is Thursday, November 5th. This represents a $1.36 annualized dividend and a yield of 1.9%. Synchrony Financial's dividend payout ratio is presently 14.20%.

About Synchrony Financial

Synchrony Financial is a consumer financial services company that provides credit products and related services through partnerships with retailers, healthcare providers and other businesses. Its offerings include private-label and co-branded credit cards, installment loans and promotional financing options. The company also provides consumer banking products, including savings accounts and certificates of deposit. Its financing solutions serve customers in areas such as retail, home improvement, automotive, health and wellness, and digital commerce, primarily in the United States.

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