Ameriprise Financial Inc. Raises Stake in Synchrony Financial $SYF

Key Points

• Ameriprise Financial Inc. has increased its stake in Synchrony Financial by 36%, now owning approximately 1.29% of the company, equivalent to 4.9 million shares valued at $259 million.
• Synchrony Financial reported a quarterly EPS of $2.50, significantly above analysts' forecast of $1.72, although its revenue declined by 1.8% year-over-year.
• The company declared a quarterly dividend of $0.30 per share, equating to a 1.6% dividend yield, and its current payout ratio stands at 14.56%.

Ameriprise Financial Inc. boosted its position in Synchrony Financial (NYSE:SYF - Free Report) by 36.0% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 4,900,281 shares of the financial services provider's stock after buying an additional 1,297,859 shares during the period. Ameriprise Financial Inc. owned approximately 1.29% of Synchrony Financial worth $259,421,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently bought and sold shares of the company. Zions Bancorporation National Association UT purchased a new stake in Synchrony Financial in the first quarter valued at approximately $30,000. Headlands Technologies LLC purchased a new stake in Synchrony Financial in the first quarter valued at approximately $34,000. CVA Family Office LLC boosted its position in 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 buying an additional 541 shares during the last quarter. Accredited Wealth Management LLC acquired a new position in Synchrony Financial in the fourth quarter valued at approximately $38,000. Finally, TCTC Holdings LLC lifted its holdings in Synchrony Financial by 89.0% in the first quarter. TCTC Holdings LLC now owns 788 shares of the financial services provider's stock valued at $42,000 after acquiring an additional 371 shares during the period. Hedge funds and other institutional investors own 96.48% of the company's stock.

Synchrony Financial Trading Up 2.7%

Shares of SYF stock opened at $73.1650 on Friday. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.24 and a quick ratio of 1.24. The company has a market cap of $27.22 billion, a price-to-earnings ratio of 8.88, a PEG ratio of 0.72 and a beta of 1.49. The stock has a 50 day simple moving average of $69.01 and a 200-day simple moving average of $60.44. Synchrony Financial has a 1-year low of $40.54 and a 1-year high of $74.11.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The financial services provider reported $2.50 earnings per share for the quarter, topping the consensus estimate of $1.72 by $0.78. The business had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.71 billion. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%.The business's quarterly revenue was down 1.8% on a year-over-year basis. During the same period in the prior year, the company posted $1.55 EPS. Synchrony Financial has set its FY 2025 guidance at EPS. On average, equities research analysts expect that Synchrony Financial will post 7.67 EPS for the current fiscal year.

Synchrony Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Tuesday, August 5th were paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Tuesday, August 5th. Synchrony Financial's dividend payout ratio is presently 14.56%.

Insider Transactions at Synchrony Financial

In related news, insider Brian J. Sr. Wenzel sold 8,514 shares of the business's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $70.00, for a total transaction of $595,980.00. Following the completion of the sale, the insider directly owned 68,588 shares in the company, valued at approximately $4,801,160. The trade was a 11.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Darrell Owens sold 600 shares of the business's stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $67.95, for a total value of $40,770.00. Following the sale, the insider owned 21,372 shares of the company's stock, 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 sold a total of 20,494 shares of company stock valued at $1,376,450 in the last three months. 0.32% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on SYF shares. Wells Fargo & Company boosted their price target on Synchrony Financial from $75.00 to $80.00 and gave the company an "overweight" rating in a report on Wednesday, July 23rd. Redburn Atlantic raised Synchrony Financial to a "hold" rating in a report on Friday, August 1st. JPMorgan Chase & Co. boosted their price target on Synchrony Financial from $52.00 to $80.00 and gave the company an "overweight" rating in a report on Friday, July 11th. Barclays decreased their price target on Synchrony Financial from $81.00 to $80.00 and set an "overweight" rating for the company in a report on Wednesday, July 23rd. Finally, Royal Bank Of Canada boosted their price target on Synchrony Financial from $75.00 to $78.00 and gave the company a "sector perform" rating in a report on Wednesday, July 23rd. Twelve research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $74.05.

Synchrony Financial Profile

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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