Norges Bank Acquires New Holdings in Synchrony Financial $SYF

Key Points

• Norges Bank disclosed a new fourth-quarter stake in Synchrony Financial, buying 4.59 million shares valued at about $383.2 million and owning roughly 1.28% of the company.
• Synchrony’s latest quarterly results showed EPS of $2.27, topping analyst estimates, though revenue of $3.70 billion came in below expectations and was down 7.4% year over year.
• Analyst sentiment remains constructive overall, with a consensus rating of “Moderate Buy” and an average price target of $86.05; the stock recently traded around $70.90.

Norges Bank acquired a new stake in Synchrony Financial (NYSE:SYF - Free Report) during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 4,593,447 shares of the financial services provider's stock, valued at approximately $383,231,000. Norges Bank owned approximately 1.28% of Synchrony Financial as of its most recent filing with the SEC.

Other institutional investors also recently added to or reduced their stakes in the company. Fideuram Asset Management Ireland dac bought a new position in Synchrony Financial in the 4th quarter worth approximately $29,000. Westside Investment Management Inc. boosted its stake in 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 in the last quarter. FWL Investment Management LLC acquired a new stake in Synchrony Financial in the 3rd quarter valued at $26,000. Palisade Asset Management LLC acquired a new stake in Synchrony Financial in the 3rd quarter valued at $29,000. Finally, Colonial Trust Co SC raised its position in Synchrony Financial by 40.2% in the 3rd quarter. Colonial Trust Co SC now owns 474 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 136 shares during the last quarter. 96.48% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on SYF shares. Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a research report on Monday, April 20th. Robert W. Baird lifted their price objective on Synchrony Financial from $83.00 to $86.00 and gave the company an "outperform" rating in a research report on Wednesday, April 22nd. JPMorgan Chase & Co. dropped their target price on Synchrony Financial from $84.00 to $73.00 and set a "neutral" rating for the company in a research report on Thursday, April 9th. Barclays boosted their target price on Synchrony Financial from $82.00 to $93.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. Finally, Truist Financial boosted their target price on Synchrony Financial from $71.00 to $82.00 and gave the stock a "hold" rating in a research report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $86.05.

Synchrony Financial Stock Performance

Shares of SYF stock opened at $70.90 on Tuesday. The company's fifty day simple moving average is $72.02 and its 200-day simple moving average is $74.73. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.08. The firm has a market cap of $23.85 billion, a PE ratio of 7.33, a P/E/G ratio of 0.62 and a beta of 1.37. Synchrony Financial has a 12 month low of $56.51 and a 12 month high of $88.77.

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

Synchrony Financial Announces Dividend

The business also recently declared 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 yield of 1.7%. The ex-dividend date was Tuesday, May 5th. Synchrony Financial's dividend payout ratio (DPR) is currently 12.41%.

Synchrony Financial announced that its board has authorized a stock buyback program on Tuesday, April 21st that permits the company to buyback $0.00 in shares. This buyback authorization permits the financial services provider to purchase shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company's management believes its stock is undervalued.

Insider Transactions at Synchrony Financial

In other Synchrony Financial news, insider Jonathan S. Mothner sold 51,258 shares of the company's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $71.23, for a total value of $3,651,107.34. Following the sale, the insider owned 132,664 shares in the company, valued at $9,449,656.72. This 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 available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is owned by corporate insiders.

Synchrony Financial Profile

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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