Khrom Capital Management LLC Invests $73.70 Million in Synchrony Financial $SYF

Key Points

• Khrom Capital Management LLC has invested approximately $73.70 million in Synchrony Financial, acquiring over 1.3 million shares, which now represents 9.8% of their total holdings.
• In recent analyst ratings, Synchrony Financial has received a mix of upgrades and target price adjustments, with BTIG Research setting a target price of $100.00 and a "buy" rating.
• The company reported earnings of $2.50 per share for the last quarter, exceeding estimates and showing a year-over-year increase from $1.55 per share, despite a slight decline in revenue compared to the previous year.

Khrom Capital Management LLC purchased a new stake in Synchrony Financial (NYSE:SYF - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 1,392,117 shares of the financial services provider's stock, valued at approximately $73,699,000. Synchrony Financial accounts for about 9.8% of Khrom Capital Management LLC's holdings, making the stock its 3rd largest holding. Khrom Capital Management LLC owned approximately 0.37% of Synchrony Financial at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. MAI Capital Management raised its position in shares of Synchrony Financial by 36.3% during the 1st quarter. MAI Capital Management now owns 627 shares of the financial services provider's stock valued at $33,000 after acquiring an additional 167 shares in the last quarter. Benjamin Edwards Inc. lifted its holdings in shares of Synchrony Financial by 0.8% in the first quarter. Benjamin Edwards Inc. now owns 25,806 shares of the financial services provider's stock valued at $1,366,000 after buying an additional 197 shares during the period. Horizon Investments LLC raised its holdings in Synchrony Financial by 3.7% during the 1st quarter. Horizon Investments LLC now owns 5,603 shares of the financial services provider's stock worth $295,000 after buying an additional 198 shares during the period. Gotham Asset Management LLC lifted its holdings in shares of Synchrony Financial by 2.0% in the fourth quarter. Gotham Asset Management LLC now owns 11,505 shares of the financial services provider's stock valued at $748,000 after purchasing an additional 226 shares in the last quarter. Finally, Synovus Financial Corp raised its position in Synchrony Financial by 2.6% during the first quarter. Synovus Financial Corp now owns 9,223 shares of the financial services provider's stock valued at $488,000 after buying an additional 230 shares during the period. 96.48% of the stock is owned by institutional investors and hedge funds.

Synchrony Financial Price Performance

Shares of NYSE SYF traded down $0.23 during midday trading on Wednesday, reaching $75.40. The company's stock had a trading volume of 1,966,682 shares, compared to its average volume of 2,856,002. 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 fifty-two week low of $40.54 and a fifty-two week high of $77.15. The business's 50 day moving average price is $70.92 and its two-hundred day moving average price is $60.88. The company has a market cap of $28.05 billion, a P/E ratio of 9.15, a P/E/G ratio of 0.76 and a beta of 1.49.

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

Synchrony Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Tuesday, August 5th were paid a $0.30 dividend. The ex-dividend date was Tuesday, August 5th. This represents a $1.20 annualized dividend and a yield of 1.6%. Synchrony Financial's dividend payout ratio is currently 14.56%.

Insider Activity

In related news, insider Curtis Howse sold 11,380 shares of Synchrony Financial stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $65.00, for a total value of $739,700.00. Following the transaction, the insider owned 108,062 shares in the company, valued at $7,024,030. This trade represents a 9.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Darrell Owens sold 600 shares of the firm's stock in a transaction on Monday, August 4th. The stock was sold at an average price of $67.95, for a total transaction of $40,770.00. Following the completion of 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 position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 20,494 shares of company stock worth $1,376,450. 0.33% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

SYF has been the subject of several research analyst reports. Rothschild & Co Redburn started coverage on Synchrony Financial in a research report on Friday, August 1st. They set a "neutral" rating and a $72.00 price objective for the company. BTIG Research upgraded Synchrony Financial from a "neutral" rating to a "buy" rating and set a $100.00 price objective on the stock in a research report on Monday, July 14th. Royal Bank Of Canada raised their price target on Synchrony Financial from $75.00 to $78.00 and gave the stock a "sector perform" rating in a research report on Wednesday, July 23rd. Wall Street Zen downgraded Synchrony Financial from a "buy" rating to a "hold" rating in a research note on Friday, August 22nd. Finally, Redburn Atlantic upgraded Synchrony Financial to a "hold" rating in a report on Friday, August 1st. Twelve equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $74.05.

About Synchrony Financial

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.