Hsbc Holdings PLC Decreases Stake in Synchrony Financial $SYF

Key Points

• HSBC Holdings reduced its Synchrony Financial stake by 13.1% in the second quarter, selling 267,289 shares and retaining 1.77 million shares valued at approximately $134.4 million. Institutional investors collectively own 96.48% of SYF.
• Analysts remain generally positive, with 12 Buy ratings and seven Holds, producing a “Moderate Buy” consensus and an average price target of $87.78. SYF recently traded at $80.82.
• Synchrony reported quarterly EPS of $2.59, beating estimates of $2.14, while revenue met expectations at $3.72 billion. The company also raised its quarterly dividend from $0.30 to $0.34 per share, equivalent to a 1.7% yield.

Hsbc Holdings PLC cut its holdings in shares of Synchrony Financial (NYSE:SYF - Free Report) by 13.1% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,765,813 shares of the financial services provider's stock after selling 267,289 shares during the quarter. Hsbc Holdings PLC owned about 0.54% of Synchrony Financial worth $134,409,000 at the end of the most recent reporting period.

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

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on SYF shares. Weiss Ratings reissued a "buy (b-)" rating on shares of Synchrony Financial in a research note on Friday, July 17th. Loop Capital assumed coverage on Synchrony Financial in a report on Friday, May 22nd. They set a "hold" rating and a $81.00 price target for the company. TD Cowen raised their price objective on Synchrony Financial from $89.00 to $90.00 and gave the stock a "buy" rating in a research report on Tuesday, July 7th. Robert W. Baird boosted their price objective on shares of Synchrony Financial from $86.00 to $90.00 and gave the company an "outperform" rating in a report on Wednesday, July 22nd. Finally, Wells Fargo & Company lowered their target price on shares of Synchrony Financial from $95.00 to $88.00 and set an "overweight" rating for the company in a research note on Wednesday, July 22nd. Twelve 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, the company presently has an average rating of "Moderate Buy" and an average price target of $87.78.

Synchrony Financial Stock Up 1.0%

NYSE:SYF opened at $80.82 on Wednesday. Synchrony Financial has a 52 week low of $63.08 and a 52 week high of $88.77. The stock's fifty day moving average is $76.38 and its two-hundred day moving average is $73.00. The stock has a market capitalization of $26.30 billion, a price-to-earnings ratio of 8.28, a price-to-earnings-growth ratio of 0.73 and a beta of 1.32. 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 issued its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $2.59 earnings per share for the quarter, beating analysts' consensus estimates of $2.14 by $0.45. Synchrony Financial had a return on equity of 23.09% and a net margin of 15.44%.The business had revenue of $3.72 billion during the quarter, compared to analysts' expectations of $3.72 billion. 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. Research analysts anticipate that Synchrony Financial will post 9.39 EPS for the current year.

Synchrony Financial Increases Dividend

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

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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