Azora Capital LP Acquires 530,573 Shares of Synchrony Financial $SYF

Key Points

• Azora Capital LP sharply increased its Synchrony Financial stake by 388.7% in the fourth quarter, buying 530,573 additional shares and bringing its total to 667,070 shares valued at about $55.7 million.
• Several other institutional investors also boosted or initiated positions in SYF, and institutional ownership remains very high at 96.48% of the company’s shares.
• Analysts remain generally positive on Synchrony Financial, with a consensus rating of “Moderate Buy” and an average price target of $86.05, even as one insider recently sold 51,258 shares under a pre-arranged trading plan.

Azora Capital LP increased its position in Synchrony Financial (NYSE:SYF - Free Report) by 388.7% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 667,070 shares of the financial services provider's stock after purchasing an additional 530,573 shares during the quarter. Synchrony Financial makes up 3.5% of Azora Capital LP's portfolio, making the stock its 11th largest holding. Azora Capital LP owned approximately 0.19% of Synchrony Financial worth $55,654,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in SYF. Freestone Grove Partners LP increased its stake in shares of Synchrony Financial by 136.0% in the fourth quarter. Freestone Grove Partners LP now owns 448,899 shares of the financial services provider's stock valued at $37,452,000 after buying an additional 258,727 shares in the last quarter. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Synchrony Financial in the fourth quarter valued at $401,000. DV Equities LLC acquired a new stake in shares of Synchrony Financial in the fourth quarter valued at $42,000. EFG International AG acquired a new stake in shares of Synchrony Financial in the fourth quarter valued at $1,390,000. Finally, Cetera Investment Advisers increased its stake in shares of Synchrony Financial by 12.2% in the fourth quarter. Cetera Investment Advisers now owns 99,498 shares of the financial services provider's stock valued at $8,301,000 after buying an additional 10,815 shares in the last quarter. 96.48% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of analysts recently commented on SYF shares. Robert W. Baird lifted their price objective on Synchrony Financial from $83.00 to $86.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 22nd. Loop Capital started coverage on Synchrony Financial in a research report on Friday, May 22nd. They issued a "hold" rating and a $81.00 price objective for the company. Barclays lifted their price objective on Synchrony Financial from $82.00 to $93.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. Truist Financial lifted their price objective on Synchrony Financial from $71.00 to $82.00 and gave the stock a "hold" rating in a research report on Thursday, April 23rd. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a research report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $86.05.

Insider Activity

In other news, insider Jonathan S. Mothner sold 51,258 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $71.23, for a total transaction of $3,651,107.34. Following the completion of the transaction, the insider directly owned 132,664 shares in the company, valued at approximately $9,449,656.72. The trade was a 27.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.36% of the company's stock.

Synchrony Financial Price Performance

Synchrony Financial stock opened at $74.02 on Thursday. The firm has a market capitalization of $24.90 billion, a P/E ratio of 7.65, a PEG ratio of 0.66 and a beta of 1.33. Synchrony Financial has a 1 year low of $60.18 and a 1 year high of $88.77. The business has a 50-day moving average of $73.14 and a 200-day moving average of $74.56. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.08.

Synchrony Financial (NYSE:SYF - Get Free Report) last posted its earnings results on Tuesday, April 21st. The financial services provider reported $2.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.14 by $0.13. The company had revenue of $3.70 billion during the quarter, compared to analyst estimates of $3.81 billion. Synchrony Financial had a return on equity of 23.41% and a net margin of 15.80%.The company's revenue for the quarter was down 7.4% compared to the same quarter last year. During the same period in the previous year, the company earned $1.89 EPS. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. On average, equities analysts anticipate that Synchrony Financial will post 9.29 EPS for the current year.

Synchrony Financial Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Tuesday, May 5th were given 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 was Tuesday, May 5th. Synchrony Financial's payout ratio is presently 12.41%.

Synchrony Financial declared that its board has initiated a stock buyback program on Tuesday, April 21st that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the financial services provider to purchase shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its shares are undervalued.

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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