Bank of America Corp DE Invests $1.12 Billion in Synchrony Financial $SYF

Key Points

• Bank of America disclosed a new $1.12 billion stake in Synchrony Financial, purchasing 14.77 million shares and acquiring approximately 4.54% of the company. Institutional investors collectively own 96.48% of Synchrony’s outstanding stock.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and average price target of $88.24, compared with the stock’s reported price of $75.85. Price targets range from $78 to $97.
• Synchrony exceeded quarterly earnings expectations, reporting $2.59 in EPS versus the $2.14 consensus estimate, while revenue matched forecasts at $3.72 billion. The company also raised its quarterly dividend from $0.30 to $0.34 per share, representing a 1.8% annualized yield.

Bank of America Corp DE bought a new stake in Synchrony Financial (NYSE:SYF - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 14,766,088 shares of the financial services provider's stock, valued at approximately $1,122,961,000. Bank of America Corp DE owned 4.54% of Synchrony Financial as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in shares of Synchrony Financial during the 2nd quarter worth approximately $2,349,452,000. Dimensional Fund Advisors LP lifted its holdings in shares of Synchrony Financial by 6.4% during the first quarter. Dimensional Fund Advisors LP now owns 6,039,753 shares of the financial services provider's stock worth $410,760,000 after purchasing an additional 365,353 shares during the period. Norges Bank bought a new stake in shares of Synchrony Financial in the 4th quarter valued at about $383,231,000. First Trust Advisors LP boosted its holdings in Synchrony Financial by 5.6% in the first quarter. First Trust Advisors LP now owns 5,338,110 shares of the financial services provider's stock valued at $363,098,000 after acquiring an additional 281,451 shares during the last quarter. Finally, Assetmark Inc. raised its stake in Synchrony Financial by 0.9% during the first quarter. Assetmark Inc. now owns 4,338,604 shares of the financial services provider's stock worth $295,112,000 after buying an additional 37,114 shares during the last quarter. Institutional investors and hedge funds own 96.48% of the company's stock.

Analyst Upgrades and Downgrades

SYF has been the topic of a number of recent analyst reports. TD Cowen boosted their price objective on Synchrony Financial from $89.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday, July 7th. Loop Capital initiated coverage on Synchrony Financial in a report on Friday, May 22nd. They issued a "hold" rating and a $81.00 target price for the company. HSBC boosted their price target on Synchrony Financial from $93.00 to $97.00 and gave the company a "buy" rating in a research note on Monday, July 13th. Wells Fargo & Company reduced their price objective on shares of Synchrony Financial from $95.00 to $88.00 and set an "overweight" rating for the company in a research report on Wednesday, July 22nd. Finally, JPMorgan Chase & Co. lowered their price objective 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. Eleven analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $88.24.

Synchrony Financial Price Performance

Shares of NYSE:SYF opened at $75.85 on Tuesday. Synchrony Financial has a twelve month low of $63.08 and a twelve month high of $88.77. The stock's 50 day moving average is $76.85 and its 200-day moving average is $73.56. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.08. The firm has a market capitalization of $24.68 billion, a price-to-earnings ratio of 7.77, a PEG ratio of 0.70 and a beta of 1.32.

Synchrony Financial (NYSE:SYF - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.14 by $0.45. Synchrony Financial had a net margin of 15.44% and a return on equity of 23.09%. The business had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.72 billion. During the same quarter last year, the firm posted $2.50 EPS. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. Sell-side analysts forecast that Synchrony Financial will post 9.37 EPS for the current fiscal year.

Synchrony Financial Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Wednesday, August 5th were issued a dividend of $0.34 per share. This is an increase from Synchrony Financial's previous quarterly dividend of $0.30. This represents a $1.36 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Wednesday, August 5th. Synchrony Financial's dividend payout ratio is 13.93%.

Synchrony Financial Company Profile

Synchrony Financial NYSE: SYF is a consumer financial services company that provides credit products and financing programs through partnerships with retailers, manufacturers, healthcare providers and other businesses. Its offerings are designed to help consumers finance purchases and manage spending across a range of industries.

The company's products include private-label and co-branded credit cards, promotional financing, installment loans and other consumer payment solutions. Synchrony also provides deposit products and other banking services through Synchrony Bank, including savings accounts, certificates of deposit and money market accounts.

Synchrony primarily serves consumers and business partners in the United States, including customers in retail, home, automotive, healthcare, specialty and other markets.

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