Planned Solutions Inc. Makes New $246,000 Investment in Synchrony Financial $SYF

Key Points

• Planned Solutions Inc. invested $246,000 in a new position in Synchrony Financial, purchasing 3,690 shares during the second quarter according to its latest 13F filing.
• Synchrony Financial reported earnings of $2.86 per share for the recent quarter, exceeding analysts' estimates, with projected earnings of $7.67 for the current fiscal year.
• The company has announced a $1 billion share buyback program, allowing it to repurchase up to 3.7% of its shares, indicating its leadership believes the stock is undervalued.

Planned Solutions Inc. purchased a new position in shares of Synchrony Financial (NYSE:SYF - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 3,690 shares of the financial services provider's stock, valued at approximately $246,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Zions Bancorporation National Association UT acquired a new stake in Synchrony Financial during the first quarter worth about $30,000. Geneos Wealth Management Inc. raised its holdings in shares of Synchrony Financial by 337.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 590 shares of the financial services provider's stock valued at $31,000 after buying an additional 455 shares during the period. MAI Capital Management raised its holdings in shares of Synchrony Financial by 36.3% during the 1st quarter. MAI Capital Management now owns 627 shares of the financial services provider's stock valued at $33,000 after buying an additional 167 shares during the period. Headlands Technologies LLC purchased a new stake in shares of Synchrony Financial during the 1st quarter valued at about $34,000. Finally, TCTC Holdings LLC raised its holdings in shares of Synchrony Financial by 89.0% during the 1st quarter. TCTC Holdings LLC now owns 788 shares of the financial services provider's stock valued at $42,000 after buying an additional 371 shares during the period. 96.48% of the stock is currently owned by institutional investors and hedge funds.

Synchrony Financial Price Performance

Shares of NYSE SYF opened at $71.58 on Friday. Synchrony Financial has a fifty-two week low of $40.54 and a fifty-two week high of $77.41. The business has a 50 day moving average price of $73.43 and a two-hundred day moving average price of $64.75. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 0.91. The firm has a market cap of $26.63 billion, a PE ratio of 7.81, a price-to-earnings-growth ratio of 0.71 and a beta of 1.50.

Synchrony Financial (NYSE:SYF - Get Free Report) last issued its quarterly earnings data on Wednesday, October 15th. The financial services provider reported $2.86 earnings per share for the quarter, beating analysts' consensus estimates of $2.22 by $0.64. Synchrony Financial had a return on equity of 22.96% and a net margin of 15.84%.The firm had revenue of $3.82 billion during the quarter, compared to analyst estimates of $3.79 billion. During the same quarter last year, the firm earned $1.94 EPS. Synchrony Financial's quarterly revenue was up .2% on a year-over-year basis. Synchrony Financial has set its FY 2025 guidance at EPS. Sell-side analysts expect that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

Synchrony Financial declared that its board has approved a share repurchase program on Wednesday, October 15th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the financial services provider to buy up to 3.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Synchrony Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Tuesday, August 5th were issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend was Tuesday, August 5th. Synchrony Financial's dividend payout ratio (DPR) is currently 13.10%.

Insider Buying and Selling

In other Synchrony Financial news, insider Darrell Owens sold 600 shares of the stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $67.95, for a total transaction of $40,770.00. Following the transaction, the insider owned 21,372 shares of the company's stock, valued at $1,452,227.40. This trade represents a 2.73% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of the stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $70.00, for a total value of $595,980.00. Following the transaction, the insider directly owned 68,588 shares in the company, valued at approximately $4,801,160. This represents a 11.04% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.32% of the company's stock.

Analysts Set New Price Targets

SYF has been the topic of several analyst reports. Morgan Stanley raised their target price on Synchrony Financial from $72.00 to $82.00 and gave the company an "equal weight" rating in a report on Monday, September 29th. Wells Fargo & Company raised their target price on Synchrony Financial from $80.00 to $85.00 and gave the company an "overweight" rating in a report on Thursday. Hsbc Global Res upgraded Synchrony Financial from a "hold" rating to a "strong-buy" rating in a report on Thursday, October 9th. Royal Bank Of Canada raised their target price on Synchrony Financial from $75.00 to $78.00 and gave the company a "sector perform" rating in a report on Wednesday, July 23rd. Finally, JPMorgan Chase & Co. reiterated a "neutral" rating and set a $75.00 target price (down from $80.00) on shares of Synchrony Financial in a report on Tuesday, October 7th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Synchrony Financial currently has an average rating of "Moderate Buy" and an average price target of $81.38.

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.

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