Royal Bank of Canada Boosts Stock Holdings in Synchrony Financial $SYF

Key Points

• Royal Bank of Canada increased its stake in Synchrony Financial by 21.5%, owning 1,063,676 shares valued at approximately $56.3 million.
• Synchrony Financial reported earnings of $2.50 per share for the latest quarter, exceeding analysts' estimates of $1.72, despite a year-over-year revenue decline of 1.8%.
• The company announced a quarterly dividend of $0.30 per share, reflecting an annualized dividend yield of 1.6% and a payout ratio of 14.56%.

Royal Bank of Canada increased its holdings in shares of Synchrony Financial (NYSE:SYF - Free Report) by 21.5% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 1,063,676 shares of the financial services provider's stock after acquiring an additional 187,939 shares during the period. Royal Bank of Canada owned approximately 0.28% of Synchrony Financial worth $56,311,000 as of its most recent SEC filing.

A number of other institutional investors have also recently modified their holdings of SYF. Aptus Capital Advisors LLC acquired a new stake in shares of Synchrony Financial during the 4th quarter valued at about $304,000. Baird Financial Group Inc. lifted its stake in Synchrony Financial by 3.0% in the 4th quarter. Baird Financial Group Inc. now owns 28,484 shares of the financial services provider's stock valued at $1,851,000 after buying an additional 833 shares in the last quarter. Centiva Capital LP purchased a new position in Synchrony Financial in the 4th quarter valued at about $825,000. Cetera Investment Advisers lifted its stake in Synchrony Financial by 11.6% in the 4th quarter. Cetera Investment Advisers now owns 56,438 shares of the financial services provider's stock valued at $3,668,000 after buying an additional 5,868 shares in the last quarter. Finally, Caption Management LLC purchased a new position in Synchrony Financial in the 4th quarter valued at about $84,000. 96.48% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on SYF shares. Rothschild & Co Redburn started coverage on shares of Synchrony Financial in a research note on Friday, August 1st. They issued a "neutral" rating and a $72.00 price target on the stock. BTIG Research raised shares of Synchrony Financial from a "neutral" rating to a "buy" rating and set a $100.00 price target on the stock in a research note on Monday, July 14th. Royal Bank Of Canada raised their price target on shares of Synchrony Financial from $75.00 to $78.00 and gave the company a "sector perform" rating in a research note on Wednesday, July 23rd. Morgan Stanley boosted their target price on Synchrony Financial from $48.00 to $70.00 and gave the stock an "equal weight" rating in a report on Thursday, July 10th. Finally, JPMorgan Chase & Co. boosted their target price on Synchrony Financial from $52.00 to $80.00 and gave the stock an "overweight" rating in a report on Friday, July 11th. Twelve equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Synchrony Financial has an average rating of "Moderate Buy" and a consensus target price of $74.05.

Synchrony Financial Trading Down 2.3%

SYF traded down $1.72 during trading hours on Wednesday, reaching $74.35. The company's stock had a trading volume of 767,688 shares, compared to its average volume of 3,941,148. Synchrony Financial has a fifty-two week low of $40.54 and a fifty-two week high of $77.41. The stock has a market cap of $27.66 billion, a PE ratio of 9.04, a P/E/G ratio of 0.75 and a beta of 1.49. The business's 50-day moving average is $71.86 and its 200-day moving average is $61.29. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.24 and a quick ratio of 1.24.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $2.50 EPS for the quarter, beating analysts' consensus estimates of $1.72 by $0.78. Synchrony Financial had a return on equity of 21.34% and a net margin of 14.43%.The firm had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.71 billion. During the same period in the prior year, the firm posted $1.55 earnings per share. The firm's quarterly revenue was down 1.8% on a year-over-year basis. Synchrony Financial has set its FY 2025 guidance at EPS. As a group, equities research analysts predict that Synchrony Financial will post 7.67 earnings per share for the current fiscal year.

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 given a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, August 5th. This represents a $1.20 dividend on an annualized basis and a yield of 1.6%. Synchrony Financial's payout ratio is presently 14.56%.

Insider Buying and Selling at Synchrony Financial

In other Synchrony Financial news, insider Darrell Owens sold 600 shares of the business's stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $67.95, for a total value of $40,770.00. Following the sale, the insider owned 21,372 shares of the company's stock, valued at $1,452,227.40. The trade was a 2.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Brian J. Sr. Wenzel sold 8,514 shares of the business's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $70.00, for a total value of $595,980.00. Following the completion of the sale, the insider directly owned 68,588 shares in the company, valued at approximately $4,801,160. The trade was a 11.04% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 20,494 shares of company stock valued at $1,376,450 over the last quarter. 0.33% of the stock is owned by company insiders.

Synchrony Financial Profile

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.