Los Angeles Capital Management LLC Has $232.50 Million Holdings in Synchrony Financial $SYF

Key Points

• Los Angeles Capital Management reduced its Synchrony Financial stake by 4.4% in the fourth quarter, though it still held 2.79 million shares valued at about $232.5 million.
• Synchrony Financial reported Q1 earnings of $2.27 per share, topping analyst expectations, while revenue came in at $3.70 billion, below estimates and down 7.4% from a year earlier.
• The company also announced a $0.30 quarterly dividend and a share repurchase authorization, while analysts currently rate the stock a Moderate Buy with a consensus price target of $86.05.

Los Angeles Capital Management LLC cut its position in shares of Synchrony Financial (NYSE:SYF - Free Report) by 4.4% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,786,730 shares of the financial services provider's stock after selling 128,488 shares during the quarter. Synchrony Financial comprises about 0.8% of Los Angeles Capital Management LLC's holdings, making the stock its 21st largest position. Los Angeles Capital Management LLC owned 0.80% of Synchrony Financial worth $232,497,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of the company. Greykasell Wealth Strategies Inc. acquired a new stake in shares of Synchrony Financial during the fourth quarter worth $42,000. Vestcor Inc increased its position in shares of Synchrony Financial by 17.0% during the fourth quarter. Vestcor Inc now owns 16,730 shares of the financial services provider's stock worth $1,396,000 after buying an additional 2,434 shares during the period. Invst LLC increased its position in shares of Synchrony Financial by 5.0% during the fourth quarter. Invst LLC now owns 10,081 shares of the financial services provider's stock worth $841,000 after buying an additional 479 shares during the period. Pinebridge Investments LLC acquired a new stake in shares of Synchrony Financial during the fourth quarter worth $1,452,000. Finally, Livforsakringsbolaget Skandia Omsesidigt increased its position in shares of Synchrony Financial by 6.4% during the fourth quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 195,012 shares of the financial services provider's stock worth $16,270,000 after buying an additional 11,700 shares during the period. 96.48% of the stock is currently owned by institutional investors and hedge funds.

Synchrony Financial Stock Up 0.1%

Synchrony Financial stock opened at $70.85 on Friday. Synchrony Financial has a 1-year low of $58.31 and a 1-year high of $88.77. The firm has a market capitalization of $23.83 billion, a price-to-earnings ratio of 7.33, a price-to-earnings-growth ratio of 0.62 and a beta of 1.33. The firm's fifty day moving average price is $72.31 and its two-hundred day moving average price is $74.62. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.08.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The financial services provider reported $2.27 earnings per share for the quarter, beating analysts' consensus estimates of $2.14 by $0.13. Synchrony Financial had a net margin of 15.80% and a return on equity of 23.41%. The firm had revenue of $3.70 billion for the quarter, compared to analyst estimates of $3.81 billion. During the same period last year, the firm earned $1.89 earnings per share. The business's quarterly revenue was down 7.4% compared to the same quarter last year. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. On average, equities research analysts predict that Synchrony Financial will post 9.29 earnings per share for the current fiscal year.

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

Synchrony Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Tuesday, May 5th were paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Tuesday, May 5th. Synchrony Financial's dividend payout ratio (DPR) is 12.41%.

Insider Buying and Selling at Synchrony Financial

In other Synchrony Financial news, insider Jonathan S. Mothner sold 51,258 shares of the firm's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $71.23, for a total value of $3,651,107.34. Following the transaction, the insider directly owned 132,664 shares of the company's stock, valued at approximately $9,449,656.72. This trade represents a 27.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.36% of the company's stock.

Analysts Set New Price Targets

SYF has been the subject of several recent analyst reports. BTIG Research cut shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a research report on Wednesday, April 22nd. Loop Capital assumed coverage on shares of Synchrony Financial in a research report on Friday, May 22nd. They set a "hold" rating and a $81.00 price objective for the company. Weiss Ratings restated a "buy (b-)" rating on shares of Synchrony Financial in a report on Monday, April 20th. Robert W. Baird raised their price target on shares of Synchrony Financial from $83.00 to $86.00 and gave the stock an "outperform" rating in a report on Wednesday, April 22nd. Finally, Barclays raised their price target on shares of Synchrony Financial from $82.00 to $93.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, Synchrony Financial currently has a consensus rating of "Moderate Buy" and a consensus price target of $86.05.

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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