Principal Financial Group Inc. Sells 65,078 Shares of Synchrony Financial $SYF

Key Points

• Principal Financial Group reduced its Synchrony Financial stake by 13.2% in the first quarter, selling 65,078 shares and leaving it with 429,653 shares valued at about $29.2 million.
• Synchrony Financial posted solid recent earnings, reporting $2.27 EPS versus $2.14 expected, though revenue of $3.70 billion came in below estimates and was down 7.4% from a year earlier.
• The company continues to attract attention from investors and analysts: it pays a quarterly dividend of $0.30, has initiated a buyback program, and Wall Street currently rates the stock a Moderate Buy with an average price target of $87.32.

Principal Financial Group Inc. cut its stake in shares of Synchrony Financial (NYSE:SYF - Free Report) by 13.2% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 429,653 shares of the financial services provider's stock after selling 65,078 shares during the period. Principal Financial Group Inc. owned about 0.13% of Synchrony Financial worth $29,225,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Chicago Partners Investment Group LLC raised its stake in shares of Synchrony Financial by 28.5% in the first quarter. Chicago Partners Investment Group LLC now owns 17,366 shares of the financial services provider's stock worth $1,181,000 after buying an additional 3,850 shares during the period. Arbejdsmarkedets Tillaegspension grew its stake in shares of Synchrony Financial by 31.2% during the 1st quarter. Arbejdsmarkedets Tillaegspension now owns 376,640 shares of the financial services provider's stock valued at $25,619,000 after acquiring an additional 89,528 shares during the period. Paradiem LLC purchased a new stake in Synchrony Financial in the 1st quarter worth approximately $277,000. International Assets Investment Management LLC increased its holdings in Synchrony Financial by 62.1% in the 1st quarter. International Assets Investment Management LLC now owns 5,018 shares of the financial services provider's stock worth $343,000 after acquiring an additional 1,923 shares in the last quarter. Finally, Fifth Third Bancorp increased its holdings in Synchrony Financial by 392.0% in the 1st quarter. Fifth Third Bancorp now owns 147,548 shares of the financial services provider's stock worth $10,036,000 after acquiring an additional 117,561 shares in the last quarter. Institutional investors own 96.48% of the company's stock.

Synchrony Financial Trading Up 0.2%

SYF stock opened at $73.74 on Monday. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.24 and a quick ratio of 1.24. Synchrony Financial has a 1-year low of $63.08 and a 1-year high of $88.77. The business has a 50 day simple moving average of $73.10 and a two-hundred day simple moving average of $73.38. The company has a market capitalization of $24.80 billion, a price-to-earnings ratio of 7.63, a PEG ratio of 0.69 and a beta of 1.32.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The financial services provider reported $2.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.14 by $0.13. Synchrony Financial had a net margin of 15.80% and a return on equity of 23.41%. The firm had revenue of $3.70 billion for the quarter, compared to analysts' expectations of $3.81 billion. During the same quarter last year, the business posted $1.89 earnings per share. The company's revenue for the quarter was down 7.4% compared to the same quarter last year. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS. Research analysts anticipate that Synchrony Financial will post 9.34 EPS for the current fiscal year.

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 issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date was Tuesday, May 5th. Synchrony Financial's payout ratio is currently 12.41%.

Synchrony Financial announced that its Board of Directors has initiated a stock buyback program on Tuesday, April 21st that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the financial services provider to repurchase shares of its stock through open market purchases. Shares repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Analyst Ratings Changes

Several brokerages have weighed in on SYF. HSBC lifted their price target on shares of Synchrony Financial from $93.00 to $97.00 and gave the company a "buy" rating in a report on Monday, July 13th. Truist Financial raised their price objective on shares of Synchrony Financial from $71.00 to $82.00 and gave the company a "hold" rating in a research report on Thursday, April 23rd. Loop Capital assumed coverage on shares of Synchrony Financial in a research note on Friday, May 22nd. They set a "hold" rating and a $81.00 target price on the stock. Wells Fargo & Company dropped their target price on shares of Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. Finally, UBS Group increased their price target on Synchrony Financial from $77.00 to $84.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 7th. Twelve equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $87.32.

Insider Buying and Selling

In other Synchrony Financial news, insider Jonathan S. Mothner sold 51,258 shares of the business'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 owned 132,664 shares in the company, valued at $9,449,656.72. The trade was a 27.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is currently owned by insiders.

Key Stories Impacting Synchrony Financial

Here are the key news stories impacting Synchrony Financial this week:

• Positive Sentiment: Zacks Research raised its estimates for Synchrony’s Q2 2028 earnings, reflecting a slightly more optimistic longer-term outlook for the company. Synchrony Financial analyst estimate update
• Positive Sentiment: Analysts also increased FY2028 EPS estimates, suggesting continued confidence in Synchrony’s earnings power over the next few years. Synchrony Financial analyst estimate update
• Neutral Sentiment: Another pre-earnings note highlighted potential support from stronger purchase volumes and a wider net interest margin, which could help Synchrony beat Q2 expectations. Will Higher Purchase Volumes Fuel Synchrony's Q2 Earnings Beat?
• Neutral Sentiment: Investors are also watching the company’s July 21 earnings release closely, with market focus centered on whether key operating metrics will support a beat. Countdown to Synchrony (SYF) Q2 Earnings
• Negative Sentiment: Zacks Research trimmed several near- to medium-term EPS estimates, including Q3 2026, Q4 2026, Q1 2027, Q3 2027, Q4 2027, and FY2027, which can pressure the stock by signaling softer expected profitability ahead. Synchrony Financial analyst estimate update

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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