Kepler Cheuvreux Suisse SA Reduces Holdings in Synchrony Financial $SYF

Key Points

• Kepler Cheuvreux Suisse SA cut its Synchrony Financial stake by 53.1% in the fourth quarter, leaving it with 21,999 shares valued at about $1.84 million.
• Synchrony reported Q1 earnings of $2.27 per share, beating estimates, but revenue of $3.70 billion fell short of expectations and declined 7.4% year over year.
• The company also announced a quarterly dividend of $0.30 per share and a board-approved buyback plan, while analysts currently rate the stock a Moderate Buy with a consensus target price of $86.32.

Kepler Cheuvreux Suisse SA trimmed its stake in Synchrony Financial (NYSE:SYF - Free Report) by 53.1% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 21,999 shares of the financial services provider's stock after selling 24,902 shares during the period. Kepler Cheuvreux Suisse SA's holdings in Synchrony Financial were worth $1,835,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of SYF. Westside Investment Management Inc. grew its position in shares of Synchrony Financial by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 358 shares of the financial services provider's stock valued at $25,000 after buying an additional 179 shares during the last quarter. FWL Investment Management LLC purchased a new position in Synchrony Financial during the 3rd quarter worth $26,000. Palisade Asset Management LLC purchased a new position in Synchrony Financial during the 3rd quarter worth $29,000. Geneos Wealth Management Inc. grew its position in Synchrony Financial by 337.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 590 shares of the financial services provider's stock worth $31,000 after purchasing an additional 455 shares during the last quarter. Finally, Colonial Trust Co SC grew its position in Synchrony Financial by 40.2% during the 3rd quarter. Colonial Trust Co SC now owns 474 shares of the financial services provider's stock worth $34,000 after purchasing an additional 136 shares during the last quarter. 96.48% of the stock is owned by hedge funds and other institutional investors.

Synchrony Financial Stock Down 0.0%

SYF stock opened at $73.11 on Monday. Synchrony Financial has a one year low of $55.10 and a one year high of $88.77. The stock has a market capitalization of $24.59 billion, a PE ratio of 7.56, a price-to-earnings-growth ratio of 0.64 and a beta of 1.37. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.24 and a current ratio of 1.24. The company has a fifty day moving average of $70.63 and a 200-day moving average of $75.03.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its earnings results on Tuesday, April 21st. The financial services provider reported $2.27 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 company had revenue of $3.70 billion during the quarter, compared to analysts' expectations of $3.81 billion. During the same quarter last year, the business earned $1.89 EPS. The business'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. As a group, analysts expect that Synchrony Financial will post 9.29 EPS for the current year.

Synchrony Financial announced that its Board of Directors has approved a stock buyback plan on Tuesday, April 21st that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the financial services provider to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Synchrony Financial Dividend Announcement

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

Insider Transactions at Synchrony Financial

In related news, insider Brian D. Doubles sold 217,554 shares of the firm's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $68.68, for a total value of $14,941,608.72. Following the completion of the sale, the insider owned 829,222 shares in the company, valued at $56,950,966.96. This trade represents a 20.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Brian J. Sr. Wenzel sold 47,112 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $67.16, for a total transaction of $3,164,041.92. Following the completion of the sale, the insider owned 64,221 shares of the company's stock, valued at $4,313,082.36. This trade represents a 42.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 323,372 shares of company stock valued at $22,080,634. 0.32% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on SYF shares. Barclays raised their price objective on shares of Synchrony Financial from $82.00 to $93.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. 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 research report on Wednesday, January 28th. JPMorgan Chase & Co. lowered their price objective on shares of Synchrony Financial from $84.00 to $73.00 and set a "neutral" rating on the stock in a research report on Thursday, April 9th. Wells Fargo & Company reduced their target price on shares of Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Finally, Wall Street Zen cut shares of Synchrony Financial from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently 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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