Handelsbanken Fonder AB Raises Stock Position in Synchrony Financial $SYF

Key Points

• Handelsbanken Fonder AB increased its stake in Synchrony Financial by 25.1% in the fourth quarter, bringing its holdings to 130,287 shares worth about $10.87 million.
• Synchrony Financial reported Q1 EPS of $2.27, beating analyst estimates, though revenue of $3.70 billion came in below expectations and fell 7.4% from a year earlier.
• The company approved a stock repurchase program and paid a quarterly dividend of $0.30 per share, equal to a 1.7% annualized yield; analysts currently rate the stock a Moderate Buy with a consensus target price of $86.32.

Handelsbanken Fonder AB lifted its stake in shares of Synchrony Financial (NYSE:SYF - Free Report) by 25.1% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 130,287 shares of the financial services provider's stock after acquiring an additional 26,130 shares during the quarter. Handelsbanken Fonder AB's holdings in Synchrony Financial were worth $10,870,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of SYF. Westside Investment Management Inc. increased its position in shares of Synchrony Financial by 100.0% during the third quarter. Westside Investment Management Inc. now owns 358 shares of the financial services provider's stock worth $25,000 after acquiring an additional 179 shares during the period. FWL Investment Management LLC purchased a new position in shares of Synchrony Financial during the third quarter worth approximately $26,000. Palisade Asset Management LLC purchased a new position in shares of Synchrony Financial during the third quarter worth approximately $29,000. Geneos Wealth Management Inc. increased its position in shares of Synchrony Financial by 337.0% during 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 period. Finally, Colonial Trust Co SC increased its position in shares of Synchrony Financial by 40.2% during the third quarter. Colonial Trust Co SC now owns 474 shares of the financial services provider's stock worth $34,000 after acquiring an additional 136 shares during the period. 96.48% of the stock is owned by hedge funds and other institutional investors.

Synchrony Financial Trading Down 0.1%

Shares of Synchrony Financial stock opened at $71.99 on Friday. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.24 and a quick ratio of 1.24. The firm has a fifty day moving average price of $71.04 and a 200 day moving average price of $74.84. Synchrony Financial has a 1 year low of $55.67 and a 1 year high of $88.77. The stock has a market cap of $24.21 billion, a PE ratio of 7.44, a price-to-earnings-growth ratio of 0.63 and a beta of 1.37.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued 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. Synchrony Financial had a net margin of 15.80% and a return on equity of 23.41%. The firm had revenue of $3.70 billion during the quarter, compared to analysts' expectations of $3.81 billion. During the same quarter last year, the company posted $1.89 earnings per share. The firm's revenue was down 7.4% compared to the same quarter last year. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Equities research analysts predict that Synchrony Financial will post 9.29 earnings per share for the current year.

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

Synchrony Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Tuesday, May 5th were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, May 5th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.7%. Synchrony Financial's payout ratio is currently 12.41%.

Insider Buying and Selling at Synchrony Financial

In related news, insider Darrell Owens sold 3,865 shares of the business's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $67.71, for a total transaction of $261,699.15. Following the transaction, the insider directly owned 17,432 shares in the company, valued at approximately $1,180,320.72. The trade was a 18.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Brian D. Doubles sold 217,554 shares of the business's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $68.68, for a total transaction of $14,941,608.72. Following the transaction, the insider owned 829,222 shares in the company, valued at $56,950,966.96. The trade was a 20.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 374,630 shares of company stock valued at $25,731,741. Corporate insiders own 0.36% of the company's stock.

Wall Street Analysts Forecast Growth

SYF has been the topic of a number of research reports. Robert W. Baird raised their target price on shares of Synchrony Financial from $83.00 to $86.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 22nd. Wells Fargo & Company cut their price objective on shares of Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. JPMorgan Chase & Co. cut their price objective on shares of Synchrony Financial from $84.00 to $73.00 and set a "neutral" rating on the stock in a report on Thursday, April 9th. BTIG Research lowered shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a report on Wednesday, April 22nd. Finally, Compass Point raised shares of Synchrony Financial from a "neutral" rating to a "buy" rating and set a $96.00 price objective on the stock in a report on Wednesday, January 28th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $86.32.

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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