Bank of New York Mellon Corp Buys New Position in Synchrony Financial $SYF

Key Points

• Bank of New York Mellon Corp acquired 2.55 million Synchrony Financial shares worth approximately $193.7 million, representing a 0.78% stake. Institutional investors collectively own 96.48% of the company.
• Synchrony reported quarterly EPS of $2.59, exceeding analysts’ $2.14 estimate, on revenue of $3.72 billion. The company raised its quarterly dividend from $0.30 to $0.34 per share, equating to a 1.7% annualized yield.
• Analyst sentiment is positive, with a consensus “Moderate Buy” rating and an average price target of $87.89, above the reported share price of $79.53.

Bank of New York Mellon Corp purchased a new position in Synchrony Financial (NYSE:SYF - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 2,546,794 shares of the financial services provider's stock, valued at approximately $193,684,000. Bank of New York Mellon Corp owned 0.78% of Synchrony Financial at the end of the most recent quarter.

Other institutional investors and hedge funds have also modified their holdings of the company. Advisors Asset Management Inc. bought a new stake in shares of Synchrony Financial during the 4th quarter valued at $29,000. Fideuram Asset Management Ireland dac purchased a new position in Synchrony Financial during the fourth quarter valued at $29,000. FWL Investment Management LLC bought a new stake in Synchrony Financial during the third quarter valued at about $26,000. Reflection Asset Management bought a new stake in Synchrony Financial during the fourth quarter valued at about $31,000. Finally, Palisade Asset Management LLC purchased a new stake in Synchrony Financial in the third quarter worth about $29,000. Hedge funds and other institutional investors own 96.48% of the company's stock.

Synchrony Financial Stock Up 3.7%

SYF opened at $79.53 on Friday. The company has a market capitalization of $25.88 billion, a PE ratio of 8.15, a price-to-earnings-growth ratio of 0.73 and a beta of 1.32. The firm has a 50-day simple moving average of $76.16 and a two-hundred day simple moving average of $72.92. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.08. Synchrony Financial has a 52 week low of $63.08 and a 52 week high of $88.77.

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

Synchrony Financial Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Wednesday, August 5th were given a $0.34 dividend. This is a boost from Synchrony Financial's previous quarterly dividend of $0.30. This represents a $1.36 annualized dividend and a yield of 1.7%. The ex-dividend date was Wednesday, August 5th. Synchrony Financial's dividend payout ratio (DPR) is presently 13.93%.

Wall Street Analysts Forecast Growth

SYF has been the topic of a number of analyst reports. Wells Fargo & Company lowered their price objective on Synchrony Financial from $95.00 to $88.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 22nd. Robert W. Baird upped their price target on shares of Synchrony Financial from $86.00 to $90.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 22nd. Loop Capital initiated coverage on shares of Synchrony Financial in a research note on Friday, May 22nd. They issued a "hold" rating and a $81.00 price objective for the company. TD Cowen raised their price objective on shares of Synchrony Financial from $89.00 to $90.00 and gave the company a "buy" rating in a research report on Tuesday, July 7th. Finally, HSBC lifted their target price on shares of Synchrony Financial from $93.00 to $97.00 and gave the company a "buy" rating in a research note on Monday, July 13th. Twelve investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Synchrony Financial currently has an average rating of "Moderate Buy" and a consensus price target of $87.89.

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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