Arrowstreet Capital Limited Partnership Acquires Shares of 341,556 Synchrony Financial $SYF

Key Points

• Arrowstreet Capital acquired 341,556 shares of Synchrony Financial in the first quarter, valued at approximately $23.2 million. Institutional investors collectively own 96.48% of the company.
• Synchrony reported quarterly EPS of $2.59, beating analysts’ $2.14 consensus estimate, while revenue matched expectations at $3.72 billion. The company also raised its quarterly dividend from $0.30 to $0.34 per share.
• Analysts maintain a generally positive view, with 12 Buy and eight Hold ratings and a consensus price target of $86.89, compared with the stock’s reported price of $74.99.

Arrowstreet Capital Limited Partnership acquired a new position in Synchrony Financial (NYSE:SYF - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 341,556 shares of the financial services provider's stock, valued at approximately $23,233,000. Arrowstreet Capital Limited Partnership owned approximately 0.10% of Synchrony Financial as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Ritholtz Wealth Management grew its holdings in Synchrony Financial by 21.9% during the 4th quarter. Ritholtz Wealth Management now owns 94,121 shares of the financial services provider's stock valued at $7,852,000 after purchasing an additional 16,901 shares during the last quarter. KTF Investments LLC bought a new stake in Synchrony Financial in the fourth quarter worth about $3,923,000. Assenagon Asset Management S.A. lifted its stake in Synchrony Financial by 959.4% in the first quarter. Assenagon Asset Management S.A. now owns 545,880 shares of the financial services provider's stock worth $37,131,000 after purchasing an additional 494,354 shares during the last quarter. Jefferies Financial Group Inc. boosted its position in shares of Synchrony Financial by 701.9% during the fourth quarter. Jefferies Financial Group Inc. now owns 120,996 shares of the financial services provider's stock valued at $10,095,000 after buying an additional 105,907 shares during the period. Finally, Forsta AP Fonden boosted its position in shares of Synchrony Financial by 7.7% during the fourth quarter. Forsta AP Fonden now owns 228,900 shares of the financial services provider's stock valued at $19,097,000 after buying an additional 16,400 shares during the period. 96.48% of the stock is currently owned by institutional investors.

Insider Activity

In other news, insider Jonathan S. Mothner sold 51,258 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $71.23, for a total transaction of $3,651,107.34. Following the transaction, the insider directly owned 132,664 shares in the company, valued at approximately $9,449,656.72. This trade represents a 27.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.36% of the company's stock.

Synchrony Financial Price Performance

Shares of SYF stock opened at $74.99 on Thursday. Synchrony Financial has a twelve month low of $63.08 and a twelve month high of $88.77. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 1.08. The stock has a fifty day simple moving average of $73.60 and a two-hundred day simple moving average of $72.71. The stock has a market capitalization of $24.40 billion, a price-to-earnings ratio of 7.68, a P/E/G ratio of 0.72 and a beta of 1.32.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.59 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $3.72 billion. During the same quarter last year, the firm posted $2.50 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. On average, analysts predict that Synchrony Financial will post 9.35 EPS for the current fiscal year.

Synchrony Financial announced that its Board of Directors has authorized a share repurchase plan on Tuesday, April 21st that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the financial services provider to buy shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

Synchrony Financial Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Wednesday, August 5th will be given a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Wednesday, August 5th. This is a boost from Synchrony Financial's previous quarterly dividend of $0.30. Synchrony Financial's dividend payout ratio is currently 12.30%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Barclays increased their price target on Synchrony Financial from $82.00 to $93.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. Royal Bank Of Canada cut their price objective on Synchrony Financial from $85.00 to $80.00 and set a "sector perform" rating on the stock in a research report on Wednesday, July 22nd. Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a research note on Friday, July 17th. JPMorgan Chase & Co. lowered their target price on shares of Synchrony Financial from $81.00 to $78.00 and set a "neutral" rating for the company in a research note on Monday, July 13th. Finally, Truist Financial upped their price target on shares of Synchrony Financial from $71.00 to $82.00 and gave the stock a "hold" rating in a report on Thursday, April 23rd. Twelve analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $86.89.

Synchrony Financial Profile

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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