Northwestern Mutual Wealth Management Co. Acquires 15,411 Shares of Synchrony Financial $SYF

Key Points

• Northwestern Mutual Wealth Management increased its Synchrony Financial stake by 41% in the fourth quarter, buying 15,411 more shares and bringing its total holdings to 53,018 shares worth about $4.42 million.
• Synchrony Financial reported better-than-expected quarterly earnings of $2.27 per share, though revenue of $3.70 billion came in below estimates and fell 7.4% year over year.
• The company also announced a quarterly dividend of $0.30 per share and has drawn mostly positive Wall Street views, with a consensus rating of Moderate Buy and an average price target of $86.05.

Northwestern Mutual Wealth Management Co. grew its holdings in shares of Synchrony Financial (NYSE:SYF - Free Report) by 41.0% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 53,018 shares of the financial services provider's stock after purchasing an additional 15,411 shares during the quarter. Northwestern Mutual Wealth Management Co.'s holdings in Synchrony Financial were worth $4,423,000 as of its most recent filing with the Securities and Exchange Commission.

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

Synchrony Financial Stock Performance

NYSE SYF opened at $68.79 on Thursday. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.24 and a quick ratio of 1.24. The firm has a market capitalization of $23.14 billion, a price-to-earnings ratio of 7.11, a P/E/G ratio of 0.62 and a beta of 1.33. The company's fifty day moving average is $72.17 and its two-hundred day moving average is $74.66. Synchrony Financial has a 52-week low of $56.97 and a 52-week high of $88.77.

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

Synchrony Financial announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, April 21st that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the financial services provider to repurchase shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Synchrony Financial Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Tuesday, May 5th were given a $0.30 dividend. This represents a $1.20 annualized dividend 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%.

Insider Transactions 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 sale, the insider directly owned 132,664 shares in the company, valued at $9,449,656.72. This trade represents a 27.87% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on SYF. Barclays lifted their target price 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. Robert W. Baird lifted their target price 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. Wells Fargo & Company dropped their target price on shares of Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Loop Capital began coverage on shares of Synchrony Financial in a report on Friday, May 22nd. They issued a "hold" rating and a $81.00 target price on the stock. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $86.05.

Synchrony Financial Company 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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