Jacobs Levy Equity Management Inc. Reduces Stock Holdings in Synchrony Financial $SYF

Key Points

• Jacobs Levy Equity Management Inc. reduced its position in Synchrony Financial by 41.0%, selling 1,812,347 shares in the first quarter, leaving it with approximately 2.6 million shares valued at $137.8 million.
• In addition to Jacobs Levy's reduction, several other hedge funds modified their holdings in Synchrony Financial, including Allspring Global Investments which increased its stake by 30.4%.
• Synchrony Financial's stock received positive ratings from various analysts, with price targets ranging from $72.00 to $78.00, and an average rating of "Moderate Buy" from twelve analysts.

Jacobs Levy Equity Management Inc. cut its stake in Synchrony Financial (NYSE:SYF - Free Report) by 41.0% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 2,602,808 shares of the financial services provider's stock after selling 1,812,347 shares during the quarter. Jacobs Levy Equity Management Inc. owned about 0.68% of Synchrony Financial worth $137,793,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of SYF. Alliancebernstein L.P. raised its stake in Synchrony Financial by 12.7% during the first quarter. Alliancebernstein L.P. now owns 717,722 shares of the financial services provider's stock worth $37,996,000 after purchasing an additional 81,161 shares during the period. AQR Capital Management LLC increased its holdings in shares of Synchrony Financial by 1.3% during the 1st quarter. AQR Capital Management LLC now owns 4,020,839 shares of the financial services provider's stock worth $206,711,000 after buying an additional 50,162 shares during the last quarter. Southpoint Capital Advisors LP increased its holdings in shares of Synchrony Financial by 25.0% during the 1st quarter. Southpoint Capital Advisors LP now owns 5,000,000 shares of the financial services provider's stock worth $264,700,000 after buying an additional 1,000,000 shares during the last quarter. Maverick Capital Ltd. grew its position in Synchrony Financial by 149.9% in the first quarter. Maverick Capital Ltd. now owns 11,309 shares of the financial services provider's stock worth $599,000 after acquiring an additional 6,784 shares during the period. Finally, Focus Partners Advisor Solutions LLC acquired a new stake in Synchrony Financial during the first quarter worth $213,000. Hedge funds and other institutional investors own 96.48% of the company's stock.

Synchrony Financial Stock Down 1.1%

Shares of Synchrony Financial stock traded down $0.80 during trading hours on Wednesday, reaching $75.27. 2,266,893 shares of the company were exchanged, compared to its average volume of 3,950,101. The firm has a market cap of $28.00 billion, a PE ratio of 9.14, a PEG ratio of 0.75 and a beta of 1.49. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.24 and a current ratio of 1.24. Synchrony Financial has a 1 year low of $40.54 and a 1 year high of $77.41. The stock's fifty day moving average is $71.86 and its 200 day moving average is $61.29.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $2.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.72 by $0.78. The business had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.71 billion. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%.The company's revenue for the quarter was down 1.8% compared to the same quarter last year. During the same period last year, the firm earned $1.55 earnings per share. Synchrony Financial has set its FY 2025 guidance at EPS. As a group, equities research analysts forecast that Synchrony Financial will post 7.67 earnings per share for the current year.

Synchrony Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Tuesday, August 5th were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Tuesday, August 5th. Synchrony Financial's dividend payout ratio (DPR) is presently 14.56%.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. JPMorgan Chase & Co. lifted their target price on Synchrony Financial from $52.00 to $80.00 and gave the company an "overweight" rating in a research report on Friday, July 11th. Redburn Atlantic raised shares of Synchrony Financial to a "hold" rating in a research note on Friday, August 1st. JMP Securities increased their target price on shares of Synchrony Financial from $68.00 to $77.00 and gave the stock a "market outperform" rating in a research note on Thursday, July 17th. BTIG Research raised shares of Synchrony Financial from a "neutral" rating to a "buy" rating and set a $100.00 target price for the company in a research note on Monday, July 14th. Finally, Morgan Stanley upped their price target on Synchrony Financial from $48.00 to $70.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 10th. Twelve research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $74.05.

Insider Activity

In other news, insider Darrell Owens sold 600 shares of the stock in a transaction on Monday, August 4th. The stock was sold at an average price of $67.95, for a total value of $40,770.00. Following the sale, the insider directly owned 21,372 shares in the company, valued at approximately $1,452,227.40. This trade represents a 2.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of the stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $70.00, for a total value of $595,980.00. Following the completion of the sale, the insider owned 68,588 shares in the company, valued at approximately $4,801,160. The trade was a 11.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 20,494 shares of company stock worth $1,376,450. Corporate insiders own 0.33% of the company's stock.

Synchrony Financial Profile

Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products, and consumer installment loans. The company also offers private label credit cards, dual co-brand and general purpose credit cards, short- and long-term installment loans, and consumer banking products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, and savings accounts, and sweep and affinity deposits, as well as accepts deposits through third-party securities brokerage firms.