Hsbc Holdings PLC Cuts Position in Synchrony Financial $SYF

Key Points

• Hsbc Holdings PLC reduced its stake in Synchrony Financial by 6.4% in the fourth quarter, selling 122,133 shares and ending with 1.79 million shares valued at about $149.5 million.
• Synchrony reported stronger-than-expected earnings for the quarter, posting EPS of $2.27 versus estimates of $2.14, though revenue came in below expectations at $3.70 billion and was down 7.4% year over year.
• Analysts remain cautiously positive on SYF overall, with a consensus rating of “Moderate Buy” and an average price target of $86.47, while the stock also pays a quarterly dividend of $0.30 per share.

Hsbc Holdings PLC lessened its stake in shares of Synchrony Financial (NYSE:SYF - Free Report) by 6.4% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 1,790,579 shares of the financial services provider's stock after selling 122,133 shares during the period. Hsbc Holdings PLC owned 0.52% of Synchrony Financial worth $149,546,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Norges Bank purchased a new position in Synchrony Financial in the fourth quarter valued at approximately $383,231,000. Bank of America Corp DE raised its holdings in Synchrony Financial by 34.6% during the second quarter. Bank of America Corp DE now owns 13,595,381 shares of the financial services provider's stock worth $907,356,000 after purchasing an additional 3,494,741 shares in the last quarter. PFA Pension Forsikringsaktieselskab purchased a new stake in shares of Synchrony Financial during the 4th quarter worth approximately $84,494,000. Worldquant Millennium Advisors LLC lifted its position in shares of Synchrony Financial by 222.5% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 937,296 shares of the financial services provider's stock worth $62,555,000 after buying an additional 646,642 shares during the last quarter. Finally, Nordea Investment Management AB grew its holdings in shares of Synchrony Financial by 13.0% during the fourth quarter. Nordea Investment Management AB now owns 5,134,903 shares of the financial services provider's stock worth $431,999,000 after purchasing an additional 592,567 shares during the last quarter. 96.48% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Synchrony Financial

In related news, insider Jonathan S. Mothner sold 51,258 shares of the firm's stock in a transaction dated Friday, May 15th. The stock was 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 approximately $9,449,656.72. This trade represents a 27.87% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is currently owned by corporate insiders.

Synchrony Financial Trading Down 0.2%

Shares of SYF stock opened at $76.20 on Friday. The firm's 50-day simple moving average is $73.51 and its 200-day simple moving average is $74.24. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.24 and a quick ratio of 1.24. Synchrony Financial has a 1-year low of $63.08 and a 1-year high of $88.77. The firm has a market cap of $25.63 billion, a P/E ratio of 7.88, a PEG ratio of 0.67 and a beta of 1.32.

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

Synchrony Financial announced that its board has initiated a stock repurchase plan on Tuesday, April 21st that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Synchrony Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Tuesday, May 5th were issued a dividend of $0.30 per share. The ex-dividend date was Tuesday, May 5th. This represents a $1.20 annualized dividend and a dividend yield of 1.6%. Synchrony Financial's payout ratio is presently 12.41%.

Analyst Upgrades and Downgrades

Several analysts have commented on SYF shares. BTIG Research downgraded Synchrony Financial from a "buy" rating to a "neutral" rating in a research note on Wednesday, April 22nd. Robert W. Baird boosted their target price on Synchrony Financial from $83.00 to $86.00 and gave the company an "outperform" rating in a report on Wednesday, April 22nd. JPMorgan Chase & Co. cut their price target on Synchrony Financial from $84.00 to $73.00 and set a "neutral" rating for the company in a research note on Thursday, April 9th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a research report on Monday, April 20th. Finally, Wells Fargo & Company dropped their price objective on shares of Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating on the stock in a research note on Thursday, April 9th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, Synchrony Financial currently has an average rating of "Moderate Buy" and a consensus price target of $86.47.

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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