Pictet Asset Management Holding SA Decreases Stock Holdings in Synchrony Financial $SYF

Key Points

• Pictet Asset Management Holding SA reduced its Synchrony Financial stake by 31.6% in the first quarter, selling 189,089 shares and leaving it with 408,952 shares worth about $27.8 million.
• Synchrony Financial reported quarterly EPS of $2.27, beating analyst estimates, though revenue of $3.70 billion came in below expectations and was down 7.4% year over year.
• The company maintained a shareholder-friendly profile with a quarterly dividend of $0.30 per share and an authorized share repurchase plan, while analysts currently rate the stock a Moderate Buy with an average target price of $86.47.

Pictet Asset Management Holding SA trimmed its position in Synchrony Financial (NYSE:SYF - Free Report) by 31.6% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 408,952 shares of the financial services provider's stock after selling 189,089 shares during the period. Pictet Asset Management Holding SA owned approximately 0.12% of Synchrony Financial worth $27,814,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. Strategic Investment Advisors MI increased its position in shares of Synchrony Financial by 43.2% in the 3rd quarter. Strategic Investment Advisors MI now owns 68,841 shares of the financial services provider's stock valued at $4,890,000 after acquiring an additional 20,778 shares during the period. Bank of America Corp DE lifted its holdings in Synchrony Financial by 5.4% in the third quarter. Bank of America Corp DE now owns 14,335,213 shares of the financial services provider's stock valued at $1,018,517,000 after acquiring an additional 739,832 shares during the period. Vinva Investment Management Ltd lifted its stake in shares of Synchrony Financial by 27.2% in the 3rd quarter. Vinva Investment Management Ltd now owns 397,508 shares of the financial services provider's stock valued at $29,145,000 after purchasing an additional 85,066 shares during the period. Danske Bank A S purchased a new stake in shares of Synchrony Financial during the 3rd quarter worth about $34,362,000. Finally, Fisher Asset Management LLC purchased a new position in Synchrony Financial during the third quarter worth approximately $1,684,000. Institutional investors and hedge funds own 96.48% of the company's stock.

Synchrony Financial Price Performance

Synchrony Financial stock opened at $76.68 on Thursday. The company has a fifty day simple moving average of $73.59 and a 200-day simple moving average of $74.28. The stock has a market cap of $25.79 billion, a P/E ratio of 7.93, a price-to-earnings-growth ratio of 0.67 and a beta of 1.31. Synchrony Financial has a 12-month low of $63.08 and a 12-month high of $88.77. 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 EPS for the quarter, beating analysts' consensus estimates of $2.14 by $0.13. The business had revenue of $3.70 billion for the quarter, compared to the consensus estimate of $3.81 billion. Synchrony Financial had a return on equity of 23.41% and a net margin of 15.80%.The business's revenue for the quarter was down 7.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.89 EPS. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Equities analysts expect that Synchrony Financial will post 9.34 EPS for the current fiscal year.

Synchrony Financial announced that its Board of Directors has authorized a share 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 buy shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's management believes its shares are undervalued.

Synchrony Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Tuesday, May 5th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, May 5th. This represents a $1.20 annualized dividend and a dividend yield of 1.6%. Synchrony Financial's dividend payout ratio (DPR) is presently 12.41%.

Insider Activity at Synchrony Financial

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

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the stock. Robert W. Baird lifted their target price on shares of Synchrony Financial from $83.00 to $86.00 and gave the company an "outperform" rating in a research report on Wednesday, April 22nd. Weiss Ratings reiterated a "buy (b-)" rating on shares of Synchrony Financial in a report on Monday, April 20th. JPMorgan Chase & Co. decreased their price objective on Synchrony Financial from $84.00 to $73.00 and set a "neutral" rating on the stock in a report on Thursday, April 9th. Wells Fargo & Company lowered their target price on shares of Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Finally, Truist Financial lifted their price objective on Synchrony Financial from $71.00 to $82.00 and gave the company a "hold" rating in a research note on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $86.47.

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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