ABC Arbitrage SA Invests $2 Million in Synchrony Financial (NYSE:SYF)

Key Points

• ABC Arbitrage SA made a new investment of approximately $2 million in Synchrony Financial, acquiring 37,759 shares during the first quarter of this year.
• Several hedge funds have adjusted their stakes in Synchrony Financial, with notable increases by accredited firms, indicating strong institutional interest as 96.48% of the stock is owned by institutional investors.
• Research firms have recently varied their outlook on Synchrony Financial, with upgrades from JMP Securities and Morgan Stanley, alongside a consensus rating of "Moderate Buy" and an average price target of $74.05.

ABC Arbitrage SA bought a new position in Synchrony Financial (NYSE:SYF - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 37,759 shares of the financial services provider's stock, valued at approximately $1,999,000.

A number of other large investors have also made changes to their positions in SYF. Accredited Wealth Management LLC acquired a new position in Synchrony Financial in the 4th quarter worth approximately $38,000. CVA Family Office LLC lifted its holdings in shares of Synchrony Financial by 355.9% in the first quarter. CVA Family Office LLC now owns 693 shares of the financial services provider's stock valued at $37,000 after purchasing an additional 541 shares in the last quarter. TCTC Holdings LLC boosted its position in shares of Synchrony Financial by 89.0% in the first quarter. TCTC Holdings LLC now owns 788 shares of the financial services provider's stock worth $42,000 after buying an additional 371 shares during the period. Rothschild Investment LLC boosted its position in shares of Synchrony Financial by 55.6% in the first quarter. Rothschild Investment LLC now owns 862 shares of the financial services provider's stock worth $46,000 after buying an additional 308 shares during the period. Finally, Golden State Wealth Management LLC grew its holdings in shares of Synchrony Financial by 503.7% during the first quarter. Golden State Wealth Management LLC now owns 972 shares of the financial services provider's stock valued at $51,000 after buying an additional 811 shares in the last quarter. Institutional investors and hedge funds own 96.48% of the company's stock.

Insiders Place Their Bets

In related news, insider Curtis Howse sold 11,380 shares of the business's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $65.00, for a total transaction of $739,700.00. Following the completion of the transaction, the insider owned 108,062 shares of the company's stock, valued at approximately $7,024,030. The trade was a 9.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of the stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $70.00, for a total value of $595,980.00. Following the sale, the insider owned 68,588 shares of the company's stock, valued at approximately $4,801,160. The trade was a 11.04% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 61,133 shares of company stock valued at $3,817,635. Company insiders own 0.32% of the company's stock.

Analyst Ratings Changes

SYF has been the subject of several research analyst reports. Truist Financial increased their price objective on Synchrony Financial from $68.00 to $76.00 and gave the stock a "hold" rating in a research note on Thursday, July 24th. Wells Fargo & Company increased 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. Barclays decreased their price target on shares of Synchrony Financial from $81.00 to $80.00 and set an "overweight" rating for the company in a report on Wednesday, July 23rd. The Goldman Sachs Group increased their target price on shares of Synchrony Financial from $70.00 to $78.00 and gave the stock a "buy" rating in a research report on Wednesday, July 2nd. Finally, BTIG Research upgraded shares of Synchrony Financial from a "neutral" rating to a "buy" rating and set a $100.00 price target on the stock in a report on Monday, July 14th. Eight equities research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. According to data from MarketBeat, Synchrony Financial currently has an average rating of "Moderate Buy" and an average target price of $74.05.

Synchrony Financial Stock Performance

Shares of NYSE:SYF traded down $0.53 during trading on Wednesday, reaching $69.46. The stock had a trading volume of 3,603,648 shares, compared to its average volume of 3,607,768. The stock has a fifty day simple moving average of $65.91 and a two-hundred day simple moving average of $60.17. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.02. Synchrony Financial has a 52 week low of $40.54 and a 52 week high of $73.76. The firm has a market capitalization of $25.84 billion, a price-to-earnings ratio of 8.43, a P/E/G ratio of 0.69 and a beta of 1.49.

Synchrony Financial (NYSE:SYF - Get Free Report) last posted its earnings results on Tuesday, July 22nd. The financial services provider reported $2.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.72 by $0.78. The business had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.71 billion. Synchrony Financial had a net margin of 14.43% and a return on equity of 21.34%. Synchrony Financial's revenue was down 1.8% compared to the same quarter last year. During the same period last year, the business posted $1.55 EPS. As a group, analysts anticipate that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Tuesday, August 5th will be paid a $0.30 dividend. The ex-dividend date is Tuesday, August 5th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.7%. Synchrony Financial's payout ratio is presently 14.56%.

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.