Fjarde AP Fonden Fourth Swedish National Pension Fund Boosts Stock Holdings in Synchrony Financial $SYF

Key Points

• Fjarde AP Fonden nearly doubled its stake in Synchrony Financial in the first quarter, increasing holdings by 98.6% to 139,451 shares valued at about $9.5 million.
• Wall Street sentiment on SYF remains mixed but generally positive, with a Moderate Buy consensus and an average price target of $86.47. Analysts’ calls range from Hold to Buy, with some recent target price cuts and upgrades.
• Synchrony posted better-than-expected EPS of $2.27 in its latest quarter, while revenue came in below estimates. The company also paid a quarterly dividend of $0.30 and noted a newly initiated share repurchase program.

Fjarde AP Fonden Fourth Swedish National Pension Fund increased its stake in Synchrony Financial (NYSE:SYF - Free Report) by 98.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 139,451 shares of the financial services provider's stock after acquiring an additional 69,250 shares during the period. Fjarde AP Fonden Fourth Swedish National Pension Fund's holdings in Synchrony Financial were worth $9,485,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of SYF. NewEdge Advisors LLC grew its position in shares of Synchrony Financial by 8.9% during the first quarter. NewEdge Advisors LLC now owns 8,302 shares of the financial services provider's stock worth $439,000 after buying an additional 679 shares in the last quarter. Woodline Partners LP raised its holdings in Synchrony Financial by 36.2% in the first quarter. Woodline Partners LP now owns 35,582 shares of the financial services provider's stock valued at $1,884,000 after acquiring an additional 9,460 shares in the last quarter. Focus Partners Wealth raised its holdings in Synchrony Financial by 7.7% in the first quarter. Focus Partners Wealth now owns 6,406 shares of the financial services provider's stock valued at $339,000 after acquiring an additional 459 shares in the last quarter. Geneos Wealth Management Inc. lifted its stake in Synchrony Financial by 337.0% in the first quarter. Geneos Wealth Management Inc. now owns 590 shares of the financial services provider's stock worth $31,000 after acquiring an additional 455 shares during the last quarter. Finally, Sivia Capital Partners LLC lifted its stake in Synchrony Financial by 56.1% in the second quarter. Sivia Capital Partners LLC now owns 6,062 shares of the financial services provider's stock worth $405,000 after acquiring an additional 2,178 shares during the last quarter. 96.48% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts have commented on SYF shares. Loop Capital began coverage on shares of Synchrony Financial in a report on Friday, May 22nd. They set a "hold" rating and a $81.00 price target for the company. Barclays raised their price objective on shares of Synchrony Financial from $82.00 to $93.00 and gave the company an "overweight" rating in a report on Wednesday, April 22nd. Wells Fargo & Company decreased their price objective on shares of Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating for the company in a research report on Thursday, April 9th. JPMorgan Chase & Co. lowered their target price on shares of Synchrony Financial from $84.00 to $73.00 and set a "neutral" rating for the company in a research note on Thursday, April 9th. Finally, BTIG Research lowered Synchrony Financial from a "buy" rating to a "neutral" rating in a report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $86.47.

Insider Activity at Synchrony Financial

In related news, insider Jonathan S. Mothner sold 51,258 shares of Synchrony Financial stock in a transaction 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 sale, the insider directly owned 132,664 shares in the company, valued at $9,449,656.72. This trade represents a 27.87% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is owned by company insiders.

Synchrony Financial Price Performance

SYF stock opened at $76.20 on Friday. The business has a 50 day moving average price of $73.51 and a 200 day moving average price of $74.24. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.08. The stock has a market cap of $25.63 billion, a price-to-earnings ratio of 7.88, a PEG ratio of 0.67 and a beta of 1.32. Synchrony Financial has a fifty-two week low of $63.08 and a fifty-two week high of $88.77.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its quarterly earnings results on Tuesday, April 21st. The financial services provider reported $2.27 EPS for the quarter, beating the consensus estimate of $2.14 by $0.13. Synchrony Financial had a net margin of 15.80% and a return on equity of 23.41%. The company had revenue of $3.70 billion for the quarter, compared to analyst estimates of $3.81 billion. During the same period in the prior year, the firm posted $1.89 earnings per share. The firm's revenue was down 7.4% on a year-over-year basis. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Equities research analysts anticipate that Synchrony Financial will post 9.34 earnings per share for the current fiscal year.

Synchrony Financial Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Tuesday, May 5th were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend was Tuesday, May 5th. Synchrony Financial's dividend payout ratio (DPR) is 12.41%.

Synchrony Financial declared that its Board of Directors has initiated a stock repurchase program on Tuesday, April 21st that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the financial services provider to reacquire shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

Synchrony Financial Company 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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