Pallas Capital Advisors LLC Takes Position in Synchrony Financial $SYF

Key Points

• Pallas Capital Advisors purchased 17,515 shares of Synchrony Financial in the second quarter, valued at approximately $1.33 million. Institutional investors and hedge funds collectively own 96.48% of the company.
• Synchrony reported quarterly EPS of $2.59, exceeding analysts’ $2.14 estimate, on revenue of $3.72 billion. The company guided for fiscal 2026 EPS of $9.25–$9.50.
• The company increased its quarterly dividend to $0.34 per share, representing a $1.36 annualized payout and a 1.7% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $87.89.

Pallas Capital Advisors LLC bought a new stake in Synchrony Financial (NYSE:SYF - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 17,515 shares of the financial services provider's stock, valued at approximately $1,332,000.

A number of other institutional investors have also added to or reduced their stakes in the company. World Investment Advisors grew its stake in Synchrony Financial by 0.6% in the first quarter. World Investment Advisors now owns 22,874 shares of the financial services provider's stock valued at $1,556,000 after acquiring an additional 134 shares during the period. Cullen Frost Bankers Inc. raised its position in shares of Synchrony Financial by 7.3% during the fourth quarter. Cullen Frost Bankers Inc. now owns 1,995 shares of the financial services provider's stock worth $166,000 after purchasing an additional 135 shares during the period. Smartleaf Asset Management LLC raised its position in shares of Synchrony Financial by 3.1% during the second quarter. Smartleaf Asset Management LLC now owns 5,027 shares of the financial services provider's stock worth $333,000 after purchasing an additional 149 shares during the period. Legacy Financial Advisors Inc. lifted its holdings in shares of Synchrony Financial by 5.1% in the 4th quarter. Legacy Financial Advisors Inc. now owns 3,109 shares of the financial services provider's stock worth $259,000 after purchasing an additional 152 shares in the last quarter. Finally, WealthTrust Asset Management LLC lifted its holdings in shares of Synchrony Financial by 0.9% in the 1st quarter. WealthTrust Asset Management LLC now owns 17,452 shares of the financial services provider's stock worth $1,187,000 after purchasing an additional 156 shares in the last quarter. 96.48% of the stock is owned by institutional investors and hedge funds.

Synchrony Financial Trading Down 0.1%

NYSE SYF opened at $80.70 on Wednesday. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 1.08. The business has a fifty day simple moving average of $75.75 and a 200 day simple moving average of $72.80. Synchrony Financial has a 12 month low of $63.08 and a 12 month high of $88.77. The firm has a market capitalization of $26.26 billion, a P/E ratio of 8.27, a PEG ratio of 0.76 and a beta of 1.32.

Synchrony Financial (NYSE:SYF - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $2.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.14 by $0.45. Synchrony Financial had a net margin of 15.44% and a return on equity of 23.09%. The firm had revenue of $3.72 billion for the quarter, compared to the consensus estimate of $3.72 billion. During the same period in the previous year, the firm earned $2.50 EPS. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. On average, analysts predict that Synchrony Financial will post 9.37 EPS for the current fiscal year.

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

Synchrony Financial Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Wednesday, August 5th were issued a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 1.7%. This is a boost from Synchrony Financial's previous quarterly dividend of $0.30. The ex-dividend date was Wednesday, August 5th. Synchrony Financial's dividend payout ratio is presently 13.93%.

Analysts Set New Price Targets

A number of brokerages have commented on SYF. Loop Capital started coverage on shares of Synchrony Financial in a research note on Friday, May 22nd. They set a "hold" rating and a $81.00 price target for the company. Robert W. Baird raised their price objective on shares of Synchrony Financial from $86.00 to $90.00 and gave the company an "outperform" rating in a research note on Wednesday, July 22nd. Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a report on Friday, July 17th. UBS Group boosted their target price on shares of Synchrony Financial from $84.00 to $87.00 and gave the stock a "neutral" rating in a research report on Monday, August 3rd. Finally, BTIG Research lowered shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a report on Wednesday, April 22nd. Twelve analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $87.89.

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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