Basswood Capital Management L.L.C. Takes $45.73 Million Position in Synchrony Financial $SYF

Key Points

• Basswood Capital Management acquired 601,368 shares of Synchrony Financial valued at approximately $45.7 million, representing about 0.18% of the company and 1.8% of Basswood’s portfolio.
• Synchrony reported quarterly EPS of $2.59, beating estimates by $0.45, on revenue of $3.72 billion. The company also raised its quarterly dividend from $0.30 to $0.34 per share, producing an annualized yield of about 1.7%.
• Analysts maintain a generally positive view, with 12 Buy ratings and seven Holds; the consensus price target is $87.78 compared with the reported share price of $79.84.

Basswood Capital Management L.L.C. purchased a new position in shares of Synchrony Financial (NYSE:SYF - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 601,368 shares of the financial services provider's stock, valued at approximately $45,734,000. Synchrony Financial accounts for approximately 1.8% of Basswood Capital Management L.L.C.'s holdings, making the stock its 16th biggest position. Basswood Capital Management L.L.C. owned about 0.18% of Synchrony Financial at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of SYF. Caisse de depot et placement du Quebec acquired a new position in Synchrony Financial in the second quarter valued at approximately $114,216,000. Odyssean LLC acquired a new stake in Synchrony Financial during the 2nd quarter worth $586,000. Man Group plc bought a new stake in shares of Synchrony Financial during the 2nd quarter valued at $153,997,000. Invst LLC bought a new stake in shares of Synchrony Financial during the 2nd quarter valued at $1,028,000. Finally, Jupiter Topco LLC bought a new stake in shares of Synchrony Financial during the 2nd quarter valued at $3,019,000. 96.48% of the stock is owned by institutional investors.

Synchrony Financial Trading Down 1.2%

Shares of NYSE SYF opened at $79.84 on Thursday. The company's fifty day moving average is $76.49 and its 200-day moving average is $73.04. The stock has a market cap of $25.98 billion, a price-to-earnings ratio of 8.18, a P/E/G ratio of 0.74 and a beta of 1.32. Synchrony Financial has a twelve month low of $63.08 and a twelve month high of $88.77. 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 (NYSE:SYF - Get Free Report) last announced 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 company had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.72 billion. During the same quarter in the previous year, the business earned $2.50 EPS. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. Equities research analysts predict that Synchrony Financial will post 9.39 EPS for the current year.

Synchrony Financial Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, August 17th. Shareholders of record on Wednesday, August 5th were paid a $0.34 dividend. The ex-dividend date of this dividend was Wednesday, August 5th. This is a positive change from Synchrony Financial's previous quarterly dividend of $0.30. This represents a $1.36 dividend on an annualized basis and a yield of 1.7%. Synchrony Financial's payout ratio is presently 13.93%.

Analyst Ratings Changes

SYF has been the topic of several recent research reports. Wells Fargo & Company reduced their price target 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. Royal Bank Of Canada dropped their price objective on Synchrony Financial from $85.00 to $80.00 and set a "sector perform" rating for the company in a report on Wednesday, July 22nd. JPMorgan Chase & Co. cut their target price on Synchrony Financial from $81.00 to $78.00 and set a "neutral" rating on the stock in a research note on Monday, July 13th. HSBC raised their target price on Synchrony Financial from $93.00 to $97.00 and gave the stock a "buy" rating in a report on Monday, July 13th. Finally, Robert W. Baird boosted their target price on Synchrony Financial from $86.00 to $90.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 22nd. Twelve investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $87.78.

About Synchrony Financial

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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