Mubadala Investment Co PJSC Cuts Holdings in Synchrony Financial $SYF

Key Points

• Mubadala Investment Co PJSC reduced its stake in Synchrony Financial by 8.1%, now holding 59,816 shares valued at approximately $3.17 million.
• Several institutional investors, including Allspring Global Investments and Merit Financial Group, have increased their stakes in Synchrony Financial during the first quarter of this year.
• Synchrony Financial reported $2.50 earnings per share for the last quarter, exceeding analysts' expectations of $1.72, while revenue experienced a slight decline of 1.8% year-over-year.

Mubadala Investment Co PJSC cut its position in Synchrony Financial (NYSE:SYF - Free Report) by 8.1% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 59,816 shares of the financial services provider's stock after selling 5,260 shares during the quarter. Mubadala Investment Co PJSC's holdings in Synchrony Financial were worth $3,167,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the company. Benjamin Edwards Inc. raised its stake 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 stake in shares of Synchrony Financial by 3.7% in the first quarter. Horizon Investments LLC now owns 5,603 shares of the financial services provider's stock valued at $295,000 after buying an additional 198 shares during the period. Gotham Asset Management LLC raised its stake 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 buying an additional 226 shares during the period. Synovus Financial Corp raised its stake in shares of Synchrony Financial by 2.6% in 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. Finally, Invst LLC raised its stake in shares of Synchrony Financial by 1.2% in the fourth quarter. Invst LLC now owns 20,560 shares of the financial services provider's stock valued at $1,336,000 after buying an additional 239 shares during the period. 96.48% of the stock is currently owned by institutional investors.

Synchrony Financial Trading Down 1.0%

Shares of NYSE SYF traded down $0.79 during midday trading on Tuesday, reaching $75.56. The company had a trading volume of 3,264,848 shares, compared to its average volume of 4,013,097. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.02. The firm's fifty day moving average price is $70.70 and its 200-day moving average price is $60.78. The stock has a market cap of $28.11 billion, a PE ratio of 9.17, a price-to-earnings-growth ratio of 0.76 and a beta of 1.48. Synchrony Financial has a one year low of $40.54 and a one year high of $77.15.

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 for the quarter, beating the consensus estimate of $1.72 by $0.78. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%.The firm had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.71 billion. During the same quarter in the previous year, the company posted $1.55 earnings per share. The business's revenue was down 1.8% on a year-over-year basis. Synchrony Financial has set its FY 2025 guidance at EPS. On average, equities research analysts anticipate that Synchrony Financial will post 7.67 earnings per share for the current year.

Synchrony Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Tuesday, August 5th were given a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, August 5th. This represents a $1.20 dividend on an annualized basis and a yield of 1.6%. Synchrony Financial's dividend payout ratio is presently 14.56%.

Insider Transactions at Synchrony Financial

In other news, insider Curtis Howse sold 11,380 shares of the stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $65.00, for a total value of $739,700.00. Following the completion of the transaction, the insider owned 108,062 shares of the company's stock, valued at approximately $7,024,030. This represents a 9.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Darrell Owens sold 600 shares of the firm's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $67.95, for a total value of $40,770.00. Following the transaction, the insider directly owned 21,372 shares of the company's stock, 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 sold 20,494 shares of company stock valued at $1,376,450. Corporate insiders own 0.33% of the company's stock.

Analysts Set New Price Targets

Several analysts have issued reports on SYF shares. Wall Street Zen lowered Synchrony Financial from a "buy" rating to a "hold" rating in a research note on Friday, August 22nd. Rothschild & Co Redburn assumed coverage on Synchrony Financial in a research note on Friday, August 1st. They set a "neutral" rating and a $72.00 price objective on the stock. Royal Bank Of Canada boosted their price objective on Synchrony Financial from $75.00 to $78.00 and gave the company a "sector perform" rating in a research note on Wednesday, July 23rd. JPMorgan Chase & Co. boosted their price objective on Synchrony Financial from $52.00 to $80.00 and gave the company an "overweight" rating in a research note on Friday, July 11th. Finally, Truist Financial boosted their price objective on Synchrony Financial from $68.00 to $76.00 and gave the company a "hold" rating in a research note on Thursday, July 24th. Twelve research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Synchrony Financial has a consensus rating of "Moderate Buy" and an average price target 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.